BlackRock engaged with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on May 9th to seek clarification on cryptocurrency regulations. The main topics of the conversation were tokenization, staking, and the approval process for exchange-traded products (ETPs). This meeting is a testament to BlackRock’s forward-thinking strategy to adapt to the rapidly changing regulatory framework surrounding digital assets.
BlackRock looked at the factors outlined in Section 6(b) of the Exchange Act. These criteria are key to finding out whether a crypto ETP is able to satisfy the regulatory benchmarks required for listing on an exchange. These benchmarks take the approach of market integrity and investor protection. Both illustrate the SEC’s determination to protect participants in the public digital asset space.
For many, staking has emerged as one of the most discussed focal points of the proof-of-stake asset exposure debate in ETPs. Just last month, BlackRock provided a deep dive into the nitty gritty specifics of in-kind redemptions for crypto ETPs. They created a detailed action plan showing the current workflows under the current cash system.
The May 9th meeting followed an earlier session on April 1st, indicating ongoing engagement between BlackRock and the SEC regarding cryptocurrency policy. BlackRock’s openness to ongoing communication with the SEC demonstrates their willingness to work to remain on the right side of regulatory thresholds.
BlackRock is currently engaging with regulators directly on cryptocurrency policy. The SEC Crypto Task Force engages with firms like BlackRock on cryptocurrency policy to stay informed about industry developments and potential regulatory challenges.
