SEC's decision on encryption ETF staking and physical redemption has been postponed to June, as U.S. regulation undergoes a comprehensive overhaul.

The U.S. Securities and Exchange Commission (SEC) announced on April 14 that it will postpone a series of proposals related to the staking and physical redemption of cryptocurrency ETFs. The SEC was originally set to make a decision in April of this year, but it has been delayed until early June. This indicates that the SEC needs more time to reorganize its long-term regulatory strategy for Crypto Assets.

The grayscale Ethereum stake ETF proposal has been postponed to June 1 for further decision.

Grayscale ( submitted an application to the New York Stock Exchange NYSE Arca on 2/14, seeking to allow its:

Ethereum Trust ETF

Ethereum Mini Trust ETF

To stake Ethereum )ETH(, allowing investors to indirectly earn staking rewards, and giving the Ethereum ETF a function similar to "dividends." The SEC was originally scheduled to decide whether to approve it by 4/17, but it has now been postponed to 6/1.

The image shows that the SEC has delayed the documents for two cryptocurrency ETFs under Grayscale, with the Cboe BZX exchange and WisdomTree-related products also postponed to June 3.

Cboe BZX Exchange proposed the following two ETFs on 2/19:

VanEck's Bitcoin Trust )HODL(

Ethereum Trust ETF

Allow investors to subscribe or redeem ETF shares using BTC and ETH, not just limited to cash redemptions. The SEC was originally scheduled to provide an answer by 4/19, and now has also extended the review of WisdomTree's Bitcoin Fund )Bitcoin Fund('s physical redemption application to 6/3.

The chart shows WisdomTree's delayed application document for its Bitcoin fund. The SEC's encryption task force is actively integrating new policy directions and is continuously meeting with industry executives.

This series of delays is related to the SEC Crypto Assets Project Group )Crypto Task Force(.

In recent months, group members have frequently met with industry representatives. For example, executives from Jito and Multicoin Capital met with the SEC in February to advocate for allowing crypto ETF to stake, creating additional revenue.

June will be a key turning point, and there may be three major changes in Crypto Assets ETF.

Assuming the grayscale stake proposal passes: Crypto Assets ETFs can provide investors with interest returns, attracting more funds into the market.

If the physical redemption mechanism is released: ETF market liquidity will greatly increase, attracting large holders and institutions to enter.

If the SEC remains cautious about the proposal: it may suggest that the "second regulatory storm" for Crypto Assets ETFs is about to hit.

The SEC has postponed its decision on the staking and physical redemption of crypto ETFs until June, as the U.S. regulatory framework undergoes a comprehensive overhaul. This was first reported by Chain News ABMedia.