Ethereum co-founder Joseph Lubin anticipates swift approval for staking in ETH-ETFs
With the nomination of Paul Atkins, a crypto-friendly lawyer, as the next SEC chair and the creation of a cryptocurrency task force under the leadership of Hester Peirce, the U.S. Securities and Exchange Commission (SEC) is expected to take a significant step forward in the cryptocurrency landscape.
Industry analysts and insiders predict that staking for U.S. spot Ethereum Exchange-Traded Funds (ETFs) will be approved by the end of 2025. This development, if confirmed, would mark a significant milestone for Ethereum investment products.
The SEC's new guidance in 2025 clarifies that staking activity on proof-of-stake networks like Ethereum, when directly participating in the network consensus, is not considered a securities offering. This regulatory clarity supports the SEC’s more favorable stance toward staking compared to previous years when staking was flagged as a potential unregistered security risk.
Several prominent asset managers, including BlackRock, Franklin Templeton, Fidelity, Grayscale, 21Shares, and Nasdaq, have filed requests with the SEC to allow staking in their Ethereum ETFs. BlackRock, a leading ETF issuer with an excellent track record of SEC approvals, recently made a late filing to add staking to its iShares Ethereum Trust (ETHA), reigniting debate about how the SEC will handle these filings, especially regarding a bulk approval versus a first-in, first-out approach.
The SEC is anticipated to act sooner than its April 2026 deadline for BlackRock’s case, possibly issuing one combined approval decision for all staking-related Ethereum ETFs by the end of this year. However, some smaller ETF issuers urge the SEC to honor first-to-file priority instead of bulk approvals, citing concerns about market fairness and investor choice.
Provider of exchange-traded products are actively seeking the best solutions to manage any technical complexities associated with staking. Industry experts, such as Joseph Lubin, founder of ConsenSys, believe that allowing staking in Ethereum ETFs will be beneficial for the technology and the ecosystem.
Hester Peirce, also known as "Crypto Mom," hinted at a possible shift in the SEC's stance regarding "staking" ETFs. She stated that if a majority of commissioners with opposing views are replaced, it would be easier for "staking" ETFs to receive approval.
The creation of a cryptocurrency task force under Peirce's leadership was announced by Acting Head Mark Uyeda. If confirmed as the next SEC chair, Atkins could potentially influence the approval of "staking" ETFs.
In early December 2024, Bernstein analysts predicted that the new SEC leadership would allow ETH-ETF investors to earn staking rewards. U.S.-listed ETFs hold a bit over 3% of Ethereum's market capitalization, according to SoSoValue.
Former SEC Chair Gary Gensler stepped down on January 20. Under Uyeda's leadership, a cryptocurrency task force has been created, with Peirce leading the task force.
In summary, with the SEC's evolving leadership and recent regulatory guidance, it is highly likely that staking for U.S. spot Ethereum ETFs will be approved by late 2025, marking a significant development for Ethereum investment products.
Defi technology is expected to benefit from the potential approval of staking for U.S. spot Ethereum Exchange-Traded Funds (ETFs) by the end of 2025, as it could attract more institutional investors to the Ethereum finance ecosystem. The SEC's new guidance, clarifying that staking activity on proof-of-stake networks like Ethereum is not considered a securities offering, supports the growing interest in Ethereum-based investments and the broader cryptocurrency landscape.
