SEC Will Approve Staking for Ethereum and Solana This Year: James Seyffart

James Seyffart, a senior ETF analyst at Bloomberg, believes that the United States Securities and Exchange Commission (SEC) will endorse staking for Ethereum (ETH) and Solana (SOL). He disclosed in a recent interview at the ongoing Permissionless IV event that staking will come this year.

“The staking is going to be approved for Ethereum and Solana no matter what this year. I think it could happen this summer,” he said.

Will the SEC Endorse Staking for ETFs?

Seyffart’s confidence stems from the SEC’s evolving stance on staking. Last month, the securities regulator clarified its regulatory viewpoint on staking. It explained that participants in protocol staking activities do not need to register transactions under the Securities Act. It added that custodial staking and related services do not qualify as securities offerings. This reduces legal concerns and opens the door for staking-enabled crypto ETFs.

Staking is a key feature for blockchain networks using the proof-of-stake (PoS) consensus algorithm. It involves depositing portions of a particular cryptocurrency into a network to secure the network and enable transaction validation. In return, these users receive rewards based on their deposits. The SEC’s new stance explains that staking rewards are considered compensation for services, not profits from others’ efforts.

With the SEC’s adjusted view of staking, Seyffart believes that applicants for Solana exchange-traded funds (ETFs) will likely see their applications approved. The ETF expert emphasized that applicants need to restructure their applications to align with the securities agency’s new stance. He added that once a Solana ETF has been approved, the already-approved Ethereum ETF will feature staking before the end of the year.

Recall that various ETH ETF issuers like Grayscale have applied for the approval of staking for the second-largest cryptocurrency. However, the financial regulator has delayed its decision to green-light staking for the financial product.

Seyffart’s forecast is notable because the SEC has historically been cautious about digital asset investment products. The approval of staking for Ethereum and Solana would represent a major step forward in the mainstream adoption of these assets.

The post SEC Will Approve Staking for Ethereum and Solana This Year: James Seyffart appeared first on Cointab.