The SEC is reviewing BlackRock's Ethereum ETF to include a stake mechanism and has postponed its decision on Grayscale's Litecoin ETF.

[The SEC is reviewing BlackRock's application to add a staking mechanism to its Ethereum ETF, delaying the decision on Grayscale's Litecoin ETF] The U.S. Securities and Exchange Commission (SEC) stated on Tuesday that it is reviewing BlackRock's application to introduce an Ethereum staking mechanism in its iShares Ethereum Trust and is seeking public comment on the relevant rule changes. This change was submitted by Nasdaq, following similar applications from companies such as 21Shares and Grayscale. This move is seen as a sign of a more lenient regulatory attitude. Since Trump took office in January of this year, the SEC has begun reviewing a large number of cryptocurrency ETF proposals. Previously, during the Biden administration, the SEC approved spot Bitcoin and Ethereum ETFs, but explicitly excluded staking features. On the same day, the SEC postponed the decision date for Grayscale's Litecoin ETF application to October 10, and passed a rule adjustment allowing ETF "physical subscriptions and redemptions," further signaling support.