BlackRock Presses SEC on Crypto Staking and Tokenized Securities

BlackRock Meets SEC to Push for Crypto Staking Integration In a significant development, BlackRock has met with the SEC’s Crypto Task Force to explore the regulatory future of staking within crypto exchange-traded products (ETPs) and the tokenization of traditional assets.

A memo published by the SEC on May 9 reveals that BlackRock is advocating for staking functionality—a feature crucial to proof-of-stake blockchains like Ethereum and Solana—to be incorporated into regulated financial products.

Why Ethereum ETFs Need Staking, According to BlackRock

BlackRock contends that Ethereum ETFs are fundamentally incomplete without staking, which allows token holders to support network operations in exchange for yield. Their view aligns with proposals from the New York Stock Exchange, which in February suggested a rule change to enable staking services within Grayscale’s Ether ETFs.

While the SEC has yet to issue a final decision, approval could usher in staking-enabled ETFs across multiple blockchains, setting a regulatory precedent for Ethereum, Solana, and beyond.

Tokenization: The Next Leap in Financial Infrastructure

Alongside staking, the meeting also focused on tokenization of traditional securities—transforming equities and bonds into blockchain-based tokens. These instruments promise round-the-clock trading, faster settlement times, and reduced infrastructure costs.

BlackRock is already leading this charge with BUIDL, a tokenized fund backed by U.S. Treasuries and boasting a market cap of $2.9 billion, the largest of its kind.

They’re not alone. Rivals like Franklin Templeton’s BENJI fund and Robinhood’s blockchain initiative for European users demonstrate that tokenized finance is no longer theoretical—it’s happening.

Bitcoin ETF Flows Reinforce Institutional Confidence

Amid its blockchain push, BlackRock’s IBIT Bitcoin ETF has seen $6.96 billion in inflows since the start of 2025—overtaking the SPDR Gold Trust (GLD) and becoming the sixth most popular ETF by inflows globally.

Despite a recent 10% Bitcoin pullback, investor faith appears strong. Gold, meanwhile, has rallied past $3,000, driven by inflation fears and geopolitical risk.

Bloomberg’s Eric Balchunas observed that this is “a really good sign for the long term,” suggesting Bitcoin ETFs could eventually eclipse gold ETFs in total capital allocation.

A Global Staking Race and Regulatory Uncertainty

While Canada and Europe already allow staking-enabled crypto ETFs, the U.S. still lags behind. Over 70 crypto ETF applications await SEC approval, and industry voices are growing louder.

The Crypto Council for Innovation, backed by a16z crypto, Kraken, and Consensys, is among those urging the SEC to clarify its position on staking and tokenization.

With BlackRock now at the table, regulatory momentum may finally tip toward a more blockchain-integrated financial future.