The Senator mentions the SEC to clarify the Crypto ETP steaking restriction.

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The US Senate Group, led by Cynthia Lummis, urged the Securities Trading Committee (SEC) to clarify the Crypto Exchange-Traded Products (ETP) protocol stay on February 20. letter.

Members of the National Assembly are looking for an answer to the exclusion of Staying in the S-1 report of the ETP issuing agency, which affects the competitiveness of US asset managers and prevents investors from accessing the core blockchain function.

The SEC allowed registration of multiple digital asset ETPs, but the publisher had to remove the staying from his application.

As a result, Senators have requested the SEC to provide an explicit reasoning for the decision that the SEC decided to exclude the staying of the digital asset ETP.

They raise three major questions about the theoretical basis behind the limit, the risk of identified SEC in connection with the steak, and whether the regulatory agency can provide steaks within the registered security product when the product is considered an investment contract. I did it.

Senators also argued that the increase in transparency would help market participants understand the SEC’s regulatory location and to inform potential legislative measures if necessary.

The Senator has set April. 1 The deadline for responding to the letter.

Competitive disadvantage

Senators argue that this position restricts the investment potential of these products in the United States, limiting its disadvantage compared to similar products in Canada, Europe and the United Kingdom. The latter recently allowed digital asset ETPs to be supported by the support of conservative and labor leadership.

Staying is essential for steak proof (POS) networks such as Ethereum (ETH) and Solana (SOL). This allows the validity test to protect the blockchain network by locking the basic assets in exchange for transaction fees and new tokens.

The author argues that if the steak of the ETP is banned, investors will not be able to realize these benefits, reduce potential profits, and weaken network security.

Staying discussions are heating up

On February 5, SEC’s encryption task force met Lucas Bruder, Multicoin Capital Kyle Samani and two legal experts from Jito Labs. This discussion focused on integrating staying into the ETP structure while solving regulatory problems.

The SEC cited various reasons for hesitation, including the repayment timeline that conflicts with the T+1 agreement cycle, the tax impact of the staying compensation, and the securities.

Due to these factors, the SEC required the publisher to remove the staying function from the initial Ether Leeum ETP application.

At the meeting, the industry representative presented two models designed to ease the concern of the SEC while enabling the staying within the ETP.

The first suggests that some of the ETP-Heled assets will be steaked through a third-party validation test, while the second model allows the ETP to have a liquid staying token that indicates steak assets. For example, Solana -based ETP may include Jitosol, a liquid staying derivative of SOL.