Jito Labs and Partners Urge SEC to Approve Liquid Staking Tokens for Solana ETFs

Industry leaders, including Jito Labs and VanEck, are advocating for liquid staking in Solana ETPs, citing enhanced capital efficiency and investor options.

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Summary

On July 31, Jito Labs, Bitwise, Multicoin Capital, VanEck, and the Solana Policy Institute appealed to the SEC for approval of Liquid Staking Tokens in Solana exchange-traded products. They argue that liquid staking can enhance capital efficiency and mitigate risks associated with traditional staking processes, while also providing more product options for investors. The SEC has yet to issue formal guidance on liquid staking, and at least nine Solana ETPs are pending a decision.

Terms & Concepts
  • Liquid Staking Tokens: Tokens that represent staked assets, allowing holders to earn rewards while maintaining liquidity.
  • ETP: Exchange-Traded Product, a security that tracks an underlying asset or index, allowing for easy trading on exchanges.
  • SEC: U.S. Securities and Exchange Commission, the regulatory body overseeing securities markets and protecting investors.