The SEC has recently adopted a more flexible attitude towards staking, a key practice in the Ethereum ecosystem and in the services offered by Metamask. The approval of the 21Shares Ethereum ETF with the staking feature suggests a change in the regulator’s strategy, which could also influence the lawsuit filed against Consensys.
The company has been accused of operating as an unregistered broker and facilitating transactions that the SEC considers unauthorized securities. However, the federal agency may now reconsider its position, potentially leading to the closure of the case.
The SEC Approves 21Shares Ethereum ETF with Staking Feature
The SEC has recently accepted the request for the Ethereum ETF by 21Shares, a significant step that includes the possibility of staking for investors. An exchange-traded fund of this type allows investors to hold shares of a fund that directly owns ETH and uses a portion of the assets to participate in staking. Staking allows the fund to generate passive returns through the validation of transactions on the Ethereum network, and the resulting profits are distributed to investors in the form of an additional “dividend” compared to simply holding the asset.
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Nate Geraci, industry expert and president of ETF Store, highlighted how the recognition of this proposal marks a turning point for the market, demonstrating that the SEC is increasingly accepting the concept of staking. The decision has been interpreted as an opening towards new investment solutions based on Ethereum, reducing fears related to the classification of staking as an unregulated financial security.
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Source: https://x.com/NateGeraci/status/1892359171481194625
The SEC, in its verdict, highlighted that staking can be an integral part of some regulated financial instruments, eliminating some of the doubts previously raised towards industry operators. This decision could have a direct impact on the case against Consensys, as the staking service of Metamask had been one of the key reasons for the regulator’s complaint. With this new perspective, blockchain companies could gain greater clarity on regulatory compliance.
According to sources close to the SEC, the agency has shown a strong interest in staking, to the point of requesting a detailed memorandum from the industry on the different types of staking and their benefits. Additionally, last week, members of the SEC’s Division of Trading and Markets participated in a webinar on staking with some industry operators, indicating active involvement and a possible release of official guidelines soon.
Possible SEC Outcome in the Case Against Consensys and Metamask Staking
As mentioned, the SEC may soon decide to withdraw its lawsuit against Consensys, initiated due to the staking services offered by Metamask. The lawsuit, filed in 2024, accused the company of operating as an unregistered broker and facilitating the sale of unauthorized securities through the Metamask Staking service. However, given the recent regulatory developments, several analysts suggest that the SEC is reconsidering its approach.
Eleanor Terrett of Fox Business highlighted that the SEC’s openness towards staking, evidenced by the approval of 21Shares’ ETF, could directly influence the case against Consensys. If the SEC is now accepting staking as part of regulated instruments, it is logical that it reconsiders the accusations made against the company. Other industry analysts also believe that the regulatory body is trying to realign its strategy to avoid further legal disputes and ensure clearer regulation.
The SEC has already demonstrated a change of direction by dropping the case against Coinbase, which was based on similar allegations related to unregistered brokerage activities. If the same logic were applied to Consensys and the Metamask staking service, the case should be dismissed. This could mark a turning point for the entire sector, reducing regulatory pressure on crypto companies and promoting a more innovation-friendly environment.
If the SEC confirmed the withdrawal of the lawsuit, the market could respond optimistically, with an increase in confidence from institutional investors. In particular, all the crypto Proof-of-Stake would be positively affected, as they require the active involvement of users in the staking process to ensure the security and efficiency of the network. To name a few, besides ETH, we find BNB, SOL, ADA, AVAX, ATOM, and DOT.
Source: https://x.com/EleanorTerrett/status/1894080927904444778?s=19
The change in the regulatory landscape in the United States
The SEC is redefining the regulatory framework for cryptocurrencies in the United States, and the case of Metamask and staking is a clear example. In recent years, the regulatory body has adopted a restrictive attitude towards cryptocurrency platforms, often classifying their activities as unregistered securities offerings. However, with the approval of the Ethereum ETF with staking function and the decision to drop the case against Coinbase, a new regulatory strategy is emerging.
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The SEC now seems more inclined to collaborate with the crypto sector rather than fight it with aggressive legal actions. This change could be the result of increasing political pressure and the evolution of regulation at a global level. If the SEC were to confirm its easing of restrictions, companies like Consensys could operate with greater security, offering services like staking through Metamask without risking sanctions.
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The evolution of the SEC’s position could favor a clearer and more structured regulation for staking and other blockchain-based services. This would allow the United States to maintain its competitiveness in the cryptocurrency sector, attracting investors and innovators. If the SEC continues on this path, the future of decentralized finance could be more stable and predictable, ensuring greater adoption and integration with the traditional financial system.
