Lummis, Colleagues Seek Clarification from SEC on Digital Asset ETP Staking Restrictions

February 21, 2025
Washington, D.C.—U.S. Senator Cynthia Lummis (R-WY), Chair of the Senate Banking Subcommittee on Digital Assets, joined by U.S. Senators Kirsten Gillibrand (D-NY), Steve Daines (R-MT), Ron Wyden (D-OR), Thom Tillis (R-NC), Bill Hagerty (R-TN), and Bernie Moreno (R-OH), sent a bipartisan letter to the Securities and Exchange Commission (SEC) requesting clarification of the agency’s position regarding protocol staking in digital asset exchange traded products (ETPs).
“The current lack of availability of protocol staking for these issuers significantly impacts the investment potential of digital asset ETPs in the U.S. and challenges the competitive positioning of U.S. asset managers in the global market,”the senators wrote.“ETPs in Canada and Europe do not prohibit protocol staking. By not permitting certain digital asset ETP issuers to include protocol staking in their S-1 filings, the SEC is undermining the consensus mechanisms underpinning certain digital assets, weakening the resilience and integrity of the data stored on certain distributed ledgers.”
The letter requests specific answers from the SEC regarding:
The letter requests a response from the SEC by March 21, 2025.
The full text of the letter is availablehere.
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