SEC Cryptography Group Meets with Jito Labs and Multicoin Capital Representatives on ETP Staking Feature

BlockBeats News, February 14th. According to a US SEC meeting memorandum dated February 5, 2025, the Crypto Special Task Force staff met with representatives from Jito Labs and Multicoin Capital Management. Two main topics were discussed during the meeting:

1. The feasibility of incorporating staking functionality in Exchange-Traded Products (ETPs);

2. Staking model schemes for specific crypto asset ETPs.

Incorporating staking functionality in ETPs would benefit investors by more accurately reflecting the value of native network assets and allowing issuers to support the security of the asset's underlying network. There are at least two viable paths for the staking model:

1. Allowing part of the assets in the ETP to be staked through validation node service providers, while ensuring timely redemption;

2. Introducing Liquidity Staking Tokens (LST) (such as JitoSOL, a staking token corresponding to the native asset SOL on the Solana blockchain) to enable all native assets to be staked.

BlockBeats Note: ETPs (Exchange-Traded Products) refer to all financial products listed for trading on an exchange platform. ETFs (Exchange-Traded Funds) are a subclass of ETPs, typically tracking an index, commodity, or a basket of assets.