GuShiio.com Institutions such as Jito Labs and Multicoin Capital met with the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency working group to discuss the feasibility of including staking into exchange-traded products. The minutes of the meeting showed that actual models of pledge and re-pledge were discussed, and pointed out that pledge restrictions could weaken asset productivity, affect investor returns, and endanger cybersecurity. The working group is considering two paths: one is to run verification nodes by service providers to allow some ETP assets to be pledged; the other is to create liquid pledge tokens for each native asset as a form of redemption. The SEC is concerned about the challenges of pledging ETFs, including unanswered questions such as possible delays in redemption periods, tax issues and whether pledged services constitute securities transactions. (TheBlock)
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