SEC Postpones Decision on BlackRock’s Ethereum ETF Staking

The U.S. Securities and Exchange Commission has postponed BlackRock’s request to add staking to its Ethereum ETF, with a new deadline set for October 30.

The delay shows the SEC is being careful with crypto products, especially staking, which has faced extra scrutiny. While approval isn’t certain, the extended review means the agency wants more time to study the risks and impacts before making a final choice.

In a recent announcement, the SEC said that it has extended the review period for Nasdaq’s proposal to allow staking in BlackRock iShares Ethereum Trust, setting a new deadline of October 30 to approve or reject the proposed rule change.

This follows Nasdaq’s July request to allow staking in BlackRock’s Ethereum ETF, which was later published by the SEC in the Federal Register on August 1, officially starting the approval process.

The SEC set its initial 45-day review period to end on September 15, but it extended the deadline to allow more time to consider the proposal and related issues before deciding.

SEC Expected to Approve Staking for Ethereum ETFs by October

In addition to BlackRock’s Ethereum ETF, the SEC has delayed other Ethereum ETF proposals, and their approval is now expected by the end of October.

The SEC will approve staking for CBOE’s 21Shares ETF by October 23 and for the NYSE’s Grayscale ETF by October 29, a day before deciding on BlackRock’s Ethereum ETFs.

The delays come as the SEC develops a standardized listing framework to streamline the future approval process for crypto ETFs. Under this framework, ETF sponsors could skip the usual Form 19b-4 process and list the ETFs on any exchange after a 75-day review period.

Ethereum’s price has surged over the last few months, partly because investors expect the SEC to approve the proposals all at once before October 23, given that the commission has already declared that staking activities are not securities.

Furthermore, the SEC has set  November 13 as the new deadline for Franklin’s Ethereum staking amendment and November 14 for its Solana and XRP ETFS, showing that the Commission needs more time to review before making a final decision.