1 month ago
Canary Capital has filed for a caller exchange-traded money (ETF) with the US Securities and Exchange Commission (SEC), proposing the Canary Staked TRX ETF launch.
According to the S-1 registration statement submitted connected April 18, the money would connection investors vulnerability to the terms movements of TRX portion incorporating staking features. The exertion is pending regulatory approval.
The ETF would clasp existent TRX tokens, with custody managed by BitGo Trust Company. Notably, this is the archetypal ETF related to TRX.
The determination represents an effort to grow crypto concern products beyond accepted spot holdings and research yield-generating features tied to proof-of-stake (PoS) blockchain networks.
However, staking wrong US-listed crypto ETFs remains a contested regulatory issue.
Staking inclusion faces regulatory hurdles
While staking is cardinal to the information and cognition of PoS networks similar Ethereum (ETH) and Tron, the SEC has historically prevented staking from being included successful crypto exchange-traded products (ETPs).
Initial Ethereum ETF proposals included staking features but were aboriginal required to region them during the reappraisal process.
The SEC has raised aggregate concerns astir integrating staking into regulated fiscal products. These concerns see the redemption timelines that could disrupt the modular T+1 colony cycle, taxation attraction complexities related to staking rewards, and questions astir whether staking services could represent an unregistered securities offering.
Representatives from the crypto industry met with the SEC’s Crypto Task Force connected Feb. 5. They presented models to code these concerns, specified arsenic utilizing third-party services for staking and liquid staking tokens.
Moreover, Senator Cynthia Lummis and different US senators sent a missive to the SEC successful February, requesting clarity connected the exclusion of staking and arguing that the existent argumentation disadvantages US plus managers compared to planetary competitors successful Canada, Europe, and the United Kingdom.
However, the SEC has delayed decisions connected 2 large regularisation changes related to crypto ETPs, including the Grayscale Ethereum Trust’s petition to involvement a information of its holdings. Decisions are present expected by June 2025.
The station Canary files for staked TRX ETF amid ongoing staking discussions successful the US appeared archetypal connected CryptoSlate.
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