SEC Explores Staking Rules for Crypto ETPs with BlackRock and CCI
The U.S. SEC recently held separate meetings with BlackRock and the Crypto Council for Innovation’s (CCI) Proof of Stake Alliance to discuss regulatory issues surrounding crypto ETPs.
These discussions, which took place on April 1, focused on addressing how crypto-based financial products could be structured and regulated.
During its meeting with the SEC’s Crypto Task Force, BlackRock addressed the mechanics of in-kind redemptions for crypto ETPs in the U.S. The asset management giant, represented by senior officials from its regulatory affairs, product engineering, ETF capital markets, and federal policy divisions, shared insights on the current cash-based workflows used in ETPs. They also proposed how similar structures might be adapted for in-kind models, potentially shaping future crypto-based funds.
Meanwhile, the SEC separately engaged with members of the Proof of Stake Alliance, a group under the Crypto Council for Innovation, which includes representatives from firms like a16z, Paradigm, Consensys, Alluvial, Lido Labs Foundation, and Marinade.
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The conversation revolved around staking practices within crypto ETPs, exploring different staking models such as liquid, custodial, and delegated non-custodial staking. The group emphasized the need for regulatory clarity on staking-as-a-service principles, covering validator responsibilities, user participation, and how staking rewards might affect the risk profile of staking-enabled crypto ETPs.
The SEC’s discussions with BlackRock and the Proof of Stake Alliance reflect a continued effort to address the regulatory challenges posed by crypto ETPs. This follows a previous meeting in February when the SEC consulted with Jito Labs and Multicoin Capital to consider the potential inclusion of staking within crypto ETPs. Representatives from these firms argued that staking is integral to proof-of-stake blockchains like Ethereum and Solana and proposed models that would balance staking functionality with liquidity needs.
Though the SEC has not yet announced any concrete regulatory changes, the ongoing dialogues indicate a push towards better understanding the technical and legal aspects of crypto financial products. The agency’s engagement with key industry players shows a willingness to consider evolving financial innovations while addressing investor protection and market integrity.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
