- BlackRock pushed for staking support in Ethereum ETFs during its May 9 SEC meeting, citing strong investor demand.
- The firm introduced its $2.9B tokenized Treasury fund BUIDL, framing it as a model for regulated asset-backed crypto products.
- BlackRock proposed new rules for crypto ETP options, focusing on liquidity thresholds and position limits to reduce market risk.
BlackRock met with the SEC’s Crypto Task Force on May 9 to discuss core crypto regulatory topics. The agenda focused on staking, tokenized assets, and the evolving approval standards for crypto exchange-traded products (ETPs).
SEC Meeting Covers Staking, Options, and ETF Rules
The SEC Crypto Task Force logged its 99th industry meeting since February, with BlackRock leading discussions on key crypto topics. In a post by Bitcoin Archive, the firm addressed staking, tokenization, ETF approval standards, and crypto options as central agenda items.
BlackRock executives included Robert Mitchnick, Benjamin Tecmire, and legal leads from compliance and digital assets. The session’s focus underscored mounting pressure to establish clearer guardrails for staking-linked ETPs as investor demand intensifies.
Recent movements in the sector have reshaped priorities around Ethereum ETF structures and staking mechanisms. Last month, the SEC authorized options trading for Ethereum ETFs issued by BlackRock, Bitwise, and Grayscale, marking a regulatory shift.
Product Suite Includes IBIT, ETHA, and BUIDL Fund
BlackRock’s full agenda included a detailed digital assets product suite breakdown. As detailed in the meeting Memo, the firm presented its exposure through IBIT, ETHA, and the $2.9 billion Ethereum-based BUIDL fund, which tokenizes U.S. Treasury assets.
The firm emphasized staking as critical to unlocking full yield potential for Ethereum ETFs. Representatives clarified that current offerings lack staking features and advocated for updates to align with investor expectations.
These findings create new opportunities for institutional investors seeking compliant yield within proof-of-stake frameworks. BlackRock’s position could accelerate SEC consideration of rule changes similar to those proposed by Grayscale in April.
Regulatory changes are also redefining risk management strategies around the tokenization of traditional assets. BlackRock outlined plans to tokenize products like bonds and real estate to reduce fees, accelerate settlement, and expand global access.
Standards Proposed for Crypto ETP and Derivative Oversight
The firm proposed a framework to meet Section 6(b) of the Exchange Act, focusing on fair practice standards for ETP approval. The Memo also highlighted interim measures to allow issuers to enter the market while full regulations are finalized.
BlackRock addressed position limits and liquidity thresholds for options on crypto ETPs. These metrics aim to prevent manipulation and enhance market integrity, particularly as ETHA and other crypto-linked products gain traction.
Such shifts are prompting firms to recalibrate strategies around derivative exposure and asset class integration. With BlackRock leading discussions, the SEC’s response may shape the next wave of regulated digital asset innovation.
