The U.S. Securities and Exchange Commission has announced a delay in its decision on the proposal to introduce staking functionality into ETF structure. The initial response deadline was set for August 11.
Concept and Goals of the Proposal
The proposal was submitted by Cboe BZX Exchange on June 9 and was later amended on June 23. The primary goal of this proposal is to introduce staking functionality into the ETF structure, which is a novel aspect for funds.
Details of the SEC Order
The SEC was originally set to respond to the proposal by August 11, but the deadline has now been postponed to September 25. This extension will give the agency more time to evaluate the potential implications for investors and the market. In its statement, the SEC emphasized the importance of a thorough analysis of the new elements that staking introduces, ensuring alignment with existing investor protection standards and regulatory compliance.
Impact on Investors and the Market
The delayed decision may impact investors, as introducing staking requires careful evaluation to prevent potential negative outcomes for market participants. Thus, the SEC aims to ensure the safety and protection of investor interests before making a decision.
Overall, the SEC's delayed decision allows for a deeper examination of the impact of staking on the ETF market while safeguarding investor interests. The final decision is expected on September 25.
