Solana infrastructure provider Jito Labs, asset managers Vaneck and Bitwise and two other stakeholders are It’s appealing The US Securities and Exchange Commission (SEC) to allow liquid staking for products exchanged by Solana Exchange (ETP).
Liquid staking is a form of allocating tokens in a validator while receiving a derivative token in return, which effectively means that staked tokens are not “locked.” Liquid staked tokens (LST) can be exchanged, used in decentralized finances or even borrowed. However, the process introduces additional risks that are not seen in traditional staking processes.
Groups appealing to the SEC, including the Solana Policy Institute and Multicoin Capital Management, argue that liquid staking can improve capital efficiency by allowing ETP providers to prevent forced balance.
“If the givers are forced to limit the prevention of a fixed percentage of properties, large creations and redemption will force the re -balance, thus increasing ETP operational costs and the introduction of potential tracking errors,” the letter read. “LSTs can be used to balance quickly in that situation and may also be delivered or received by the type of (authorized participant) …”
The additional benefits mentioned in the letter include increasing network security, more product options for investors and additional income for ETP providers. At least nine solana (Sol) ETPs are currently awaiting a decision from Sec.
The letter does not cover the dangers of liquid staking, in addition to these are smart contract bugs or weaknesses, eliminating events and falling risks. The SEC has not released a formal guide to liquid staking, even though it has staking traditional may not form a security offer If it is directly tied to a consensus process.
Related: Comes to wise contracts and staking at the base layer of bitcoin
The Crypto ETP staking a hot button issue in 2025
Solana is not the only cryptocurrency advocates who want to see ETP staks. Those who gave ether (Eth) Funds are also looking for approval for staking features.
On July 17, Nasdaq filed an application with the SEC To allow staking in the ishares ether of blackrock. The stock exchange filed similar applications for Grayscale In February.
Some analysts also uplift the prospect, saying that increasing staking in ether ETF may be Allow institutional capital flow In these funds.
In March 2025, Blackrock’s Digital Assets said, Robbie Mitchnick, said that while the company’s ETF was successful, it had became “less perfect” without staking.
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