The US Securities and Exchange Commission’s (SEC) Crypto Task Force recently held separate meetings on April 1 with representatives from BlackRock and the Crypto Council for Innovation’s (CCI) Proof of Stake Alliance. The focus of these discussions was on regulatory issues related to crypto exchange-traded products (ETPs).
BlackRock, a key player in the financial industry, discussed in-kind redemptions for crypto ETPs traded in the US during their session with the SEC’s Crypto Task Force. They presented detailed information on existing workflows and the role of market participants in the cash model used in ETPs. Additionally, BlackRock addressed how these systems could potentially apply to future crypto-based funds using in-kind models.
On the other hand, the SEC engaged with members of the Proof of Stake Alliance under the CCI. This group, comprised of representatives from leading firms such as a16z, Paradigm, and Consensys, discussed staking-related topics and their implications for crypto ETPs. The agenda included reviewing various staking models such as liquid, custodial, and delegated non-custodial staking. Participants also presented staking-as-a-service industry principles aimed at informing the regulatory treatment of validator operations and user participation in proof-of-stake networks.
The SEC’s engagement with BlackRock and the Proof of Stake Alliance underscores the continued institutional interest in advancing regulatory clarity for crypto financial products. These discussions follow a previous meeting held on Feb. 5 where the SEC’s Crypto Task Force met with representatives from Jito Labs and Multicoin Capital to evaluate the potential inclusion of staking within crypto ETPs. Participants argued that staking is essential to proof-of-stake (PoS) blockchains like Ethereum and Solana and proposed two models to address the SEC’s concerns.
While no regulatory outcomes were disclosed, these meetings are part of the SEC’s ongoing review process as it evaluates technical and legal frameworks regarding crypto ETPs. The discussions with industry leaders like BlackRock and the Proof of Stake Alliance are crucial steps towards achieving regulatory clarity and fostering innovation in the crypto financial landscape.