Grayscale Ethereum Archives

The U.S. Securities and Exchange Commission (SEC) is taking more time to review a proposed rule change that would allow ether staking in two Grayscale funds. The extension gives the Commission until June 1, 2025, to finalize its position on amendments involving the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF. Good to know The SEC extended its deadline to decide on Grayscale’s Ethereum Trust staking proposal. If approved, staking could be introduced to Grayscale’s Ethereum ETF products. The SEC has recently softened its stance on decentralized staking models. NYSE Arca submitted the proposal on February 14, requesting permission to alter existing rules so the trusts can engage in ether staking. The amendment was published in the Federal Register on March 3, but since then, no public comments have been submitted. Citing the need for a deeper review, the SEC said, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.” The extension is in line with Section 19(b)(2) of the Securities Exchange Act of 1934, which allows for more time to evaluate complex regulatory proposals. Originally, the SEC’s review window was set to close on April 17, but the new deadline now stretches an additional 45 days. If the rule change is approved, Grayscale’s products would incorporate staking as part of their investment structure. That could mean added returns for investors but may also bring fresh regulatory and operational considerations, particularly around custody and compliance. The Commission’s position on staking has evolved over the last year. In early 2023, it charged Kraken for offering staking as an unregistered security, which led to a $30 million settlement and the shutdown of Kraken’s U.S.-based staking services. Coinbase was also targeted, but that case was dropped this February with no penalties or required operational changes. As of March, the SEC clarified that participating in proof-of-stake systems doesn’t automatically violate securities law. The statement hinted at a more favorable view toward decentralized staking models, although the agency still applies caution to centralized services.

Grayscale Ethereum

SEC Delays Decision on Grayscale Ethereum Trust Staking Proposal

Grayscale Aims to Transform Ethereum Trust into ETF Linked to Ether Spot Price