Jito Labs, along with asset managers VanEck and Bitwise, is pushing for liquid staking to be approved for Solana exchange-traded products (ETPs) by the US Securities and Exchange Commission (SEC). Liquid staking allows tokens to be staked without being locked up, enabling them to be traded or used in decentralized finance while introducing additional risks. Advocates argue that it could enhance capital efficiency by minimizing forced rebalancing for ETP issuers, thereby reducing operational costs and tracking errors. The letter requesting the SEC's guidance highlights additional benefits like increased network security and product offerings for investors. Currently, there are nine Solana ETPs awaiting a decision from the SEC. While other cryptocurrencies, such as Ether, are also seeking similar approvals, the SEC has yet to provide guidance specifically for liquid staking, focusing instead on traditional staking processes.

Source 🔗