BlackRock meets with SEC Crypto Task Force to discuss staking and options on crypto ETFs

Representatives at the world's largest asset management firm, BlackRock, met with U.S. Securities and Exchange Commission staff to discuss staking and options on cryptocurrency exchange-traded funds. 

The firm's representatives met with members of the SEC's crypto task force on Friday, according to a memorandum. 

"The topic discussed was approaches to addressing issues related to regulation of crypto assets," according to that memo. 

Firms have been looking to get the SEC's sign-off to allow staking for crypto ETFs over the past few months. BlackRock Head of Digital Assets Robert Mitchnick spoke about the potential of allowing staking for spot Ethereum ETFs in March, adding that there are some "complex challenges" to figure out, but said if so, it could be a "step change upward." Mitchnick attended the SEC's meeting on Friday as well, according to the memo.

BlackRock's representatives spoke with SEC staff about 'considerations for facilitating ETPs with staking capabilities" and also discussed parameters for figuring out positions and exercise limits for options on crypto ETFs, including liquidity thresholds, according to the filing.

The SEC allowed options trading on spot Ethereum ETFs, including those from BlackRock, Grayscale, and Bitwise, last month. 

BlackRock also discussed general standards for approving crypto ETFs. 

The SEC's crypto task force has met with various stakeholders over the past few months as the agency takes a different approach to regulating the digital asset industry compared to years past.

Former SEC Chair Gary Gensler warned that crypto was "rife with fraud and manipulation" and had bad actors in the space. During his time leading the agency, the SEC brought several cases against large crypto firms, and many were later dropped after he left in January. 

President Donald Trump appointed Chair Paul Atkins, who said that he anticipates "huge benefits" from digital assets and plans to work with lawmakers to create a supportive regulatory framework for crypto. The task force, led by Republican Commissioner Hester Peirce, is set to hold its fourth roundtable on Monday to discuss tokenization.