Crypto Staking: SEC Engages Jito Labs

SEC Explores Staking in Crypto ETPs with Jito Labs and Multicoin Capital

• The SEC’s Crypto Task Force, led by Commissioner Hester Peirce, met with Jito Labs and Multicoin Capital on February 5.
• Two staking models for crypto exchange-traded products (ETPs) were proposed: the Services Model and the LST Model.
• The Services Model involves staking native assets through validator service providers.
• The LST Model uses liquid staking tokens representing staked versions of native assets.
• Concerns addressed included redemption timing, tax implications, and classification as securities transactions.

On February 5, the SEC’s Crypto Task Force discussed potential staking features for crypto ETPs with Jito Labs and Multicoin Capital. Two models were proposed to improve investor returns and network security while addressing previous regulatory concerns.