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SEC Weighs Staking for ETPs, Focusing on JitoSOL & SOL.

14.02.2025 17:21

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**Headline: SEC Mulls Over Staking Integration for ETPs, Focusing on JitoSOL and SOL**

A leaked memorandum from a Securities and Exchange Commission (SEC) meeting on February 5, 2025, reveals that the agency is exploring the possibility of incorporating staking features into Exchange-Traded Products (ETPs). The discussion centered on ways to refine the investor experience and more accurately reflect the intrinsic worth of the underlying crypto assets.

During the meeting, representatives from Jito Labs and Multicoin Capital Management reportedly presented arguments for integrating staking into ETPs, highlighting that such a move would not only improve price discovery but also strengthen the security of the associated blockchain networks. The SEC has pinpointed potentially viable solutions.

Specifically, the SEC is considering two primary avenues for embedding staking mechanisms. One approach involves allowing a portion of the ETP's holdings to be staked through delegated validation nodes, ensuring that liquidity remains uncompromised. An alternative strategy under consideration is the use of Liquidity Staking Tokens (LSTs). This would enable staking across a broader range of digital assets, making staking more accessible to investors.