BlackRock, one of the world’s largest asset management companies, held an important meeting with the US Securities and Exchange Commission’s (SEC) Crypto Task Force on May 9.
During the meeting, issues such as staking practices, tokenization of securities, approval standards for crypto exchange-traded funds (ETFs) and defining option transactions for these ETFs were discussed.
BlackRock, which requested the meeting, introduced its digital asset product portfolio by making a presentation to SEC officials. The company’s products such as IBIT (Bitcoin ETF), ETHA (Ethereum ETF) and BlackRock USD Institutional Digital Liquidity Fund (BUIDL) were evaluated in light of market developments.
BlackRock also shared its views on the regulatory framework for staking and how staking-enabled ETPs (Exchange Traded Products) could be developed, as well as regulatory expectations and potential steps towards the tokenization of securities.
Another focus of the meeting was the criteria required for approval of cryptocurrency ETPs. BlackRock consulted with the SEC on issues such as how to meet the qualification requirements under Section 6(b) of the Securities Exchange Act and the establishment of an interim regulatory framework.
Finally, options trading for crypto ETPs was discussed, where technical details such as position limits, usage limits, and liquidity thresholds of the underlying assets were evaluated.
*This is not investment advice.
