Franklin Templeton’s Ethereum ETF Decision Delayed by SEC, What Will Be the Impact?

Jakarta, Pintu News – The United States Securities and Exchange Commission (SEC) recently announced a delay in their decision regarding the staking license for the Ethereum ETF filed by Franklin Templeton.

This filing, made by Cboe BZX Exchange, Inc on March 10, 2025, sought approval to allow the ETF to stake Ethereum (ETH) and earn rewards. The decision to postpone this sparked further discussion regarding regulation and investor protection in market practices.

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SEC Review Process

The SEC has initiated a formal review process to evaluate whether Franklin Templeton’s staking proposal complies with existing investor protection rules in the Securities Exchange Act. In particular, the SEC is focusing on Section 6(b)(5) which provides for fair and safe market practices.

This review aims to ensure that no manipulative or fraudulent acts occur through this staking practice. The SEC has also opened the opportunity for the public to submit comments, data, and arguments regarding this proposal.

The general public is given 21 days after this announcement is officially published in the Federal Register to submit their comments. Meanwhile, response comments must be submitted within 35 days. This move shows that the SEC is still considering the proposal and has yet to make a final decision.

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Benefits of Staking for Investors

Ethereum (ETH) staking by these ETFs is expected to provide a passive income stream to investors through earned rewards. Just like regular Ethereum (ETH) holders, the staking ETF will participate in the validation of blockchain transactions and get rewarded for the contribution.

This is a move that could increase investment value for ETF shareholders. However, the decision to allow ETF-scale staking requires careful consideration of risk and security.

The SEC wants to ensure that all staking activities are conducted in a way that does not harm investors. This includes ensuring transparency and fairness in the distribution of staking rewards.

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Implications of SEC Delay

This delay by the SEC demonstrates the agency’s cautious approach in regulating new financial products involving blockchain technology and cryptocurrencies. This decision also provides additional time for the SEC to analyze the potential impact of staking in ETFs on the overall market.

This is important to maintain the integrity and stability of the financial markets. Additionally, the delay provides an opportunity for stakeholders to submit views and data that might influence the SEC’s final decision. This process is expected to result in a better framework for the integration of cryptocurrencies like Ethereum (ETH) in mainstream investment products.

Conclusion

With this delay, financial markets and investors are expected to remain vigilant and stay tuned for further developments. The SEC’s final decision will greatly impact the way ETFs interact with blockchain technology and could set an important precedent for similar cases in the future.

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Reference

• Crypto Times. SEC Delays Decision on Franklin Templeton’s Ethereum ETF Staking. Accessed on June 17, 2025
• Featured Image: Cryptoslate