SEC Commissioner Peirce says staking for spot Ether ETFs may be reconsidered

While the U.S. Securities and Exchange Commission (SEC) has approved spot Ethereum ETFs without a staking option, Commissioner Hester Peirce says this may be open to reconsideration.

Peirce shared this view in an interview with Coinage, noting that the exclusion of staking for spot Ethereum (ETH) ETFs or other spot ETF features may be reconsidered.

“There were features that some people wanted to see included in the product that were not included. Those are always open to re-evaluation on my part,” the SEC Commissioner said.

Peirce declined to comment on the SEC’s interaction with issuers and what has transpired regarding the removal of staking.

NEW: SEC Commissioner Peirce says staking of Ethereum ETFs may be open to reconsideration

“Certainly something like staking or any aspect of the product… from my perspective, those are always open to re-evaluation.” picture.twitter.com/SFUTPcX80z

— Zack Guzman (@zGuz) July 17, 2024

Analyst on why a review of staking in ETH ETFs may occur

When the SEC approved spot Ethereum ETFs in May, the issuers’ filings did not include staking, a result of the agency’s view that staking is an investment contract. In June, the commission sued Ethereum developer Consensys, specifically because the product was offered through the company’s MetaMask wallet.

Commenting on the SEC Commissioner’s comments, Bloomberg’s senior ETF analyst Eric Balchunas said Peirce’s view is what many people think.

Notably, Balchunas noted in a comment to X that reassessment is likely for both staking and in-kind creation or redemptions for spot ETH and spot BTC ETFs. More likely is if there is a change in the US government after the upcoming election.

Trump emerging as the name with the highest probability of winning and cryptocurrency bets on Polymarket show that the industry is overly optimistic about this.

Meanwhile, the crypto market has been bouncing in anticipation of spot Ethereum ETFs set to debut next week. Ethereum’s price surged above $3,500 on July 17, while the enthusiasm has helped Solana and other altcoins return to significant levels as well.