The Securities and Futures Commission (SFC) of Hong Kong is considering allowing the inclusion of Ethereum staking for issuers of exchange-traded funds (ETFs) based on the popular cryptocurrency. This move by Hong Kong’s financial regulator is in contrast to the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as a violation of securities laws. In light of the potential approval of Ethereum ETFs in the US, major issuers have recently made changes to their proposals, removing staking altogether.
According to Bloomberg, the SFC is currently evaluating whether Ethereum ETF issuers in Hong Kong should be allowed to offer staking services. The regulator has reportedly been in touch with crypto ETF issuers in Hong Kong to discuss the possibility of providing staking services through licensed platforms. However, it is important to note that the Hong Kong Securities and Futures Commission is still in the discussion phase, and there is no fixed timeline for implementing this service.
Meanwhile, the US SEC has made a significant move in the cryptocurrency market by asking exchanges seeking to list Ethereum ETFs to update their records. This action is seen as a step forward in the regulation of cryptocurrency ETFs, according to Joseph Edwards, head of research at Enigma Securities. He believes that opposing the ETH ETF after approving BTC ETFs would have raised questions about the status of Ethereum securities, and it seems that the decision was made not to engage in that fight.
It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
In other news, Ethereum is on track to test the $4,100 mark, driven by the potential approval of ETFs. This rally has also led to an explosion of memecoins such as PEPE, BONK, and MOG.