US Regulators Approve Crypto Staking for ETFs Amidst Bitcoin's Market Rebound
US Regulators Approve Crypto Staking for ETFs Amidst Bitcoin's Market Rebound
US regulators, including the Treasury and IRS, have established a clear legal framework for exchange-traded funds (ETFs) and trusts to engage in crypto staking, allowing them to share rewards with investors. This development unfolds as Bitcoin (BTC) demonstrates resilience, recovering above the $105,000 mark following a brief dip below $100,000, which had triggered market fear and liquidations.
Crypto Staking Sees Regulatory Clarity in the US
The US Treasury and Internal Revenue Service (IRS) have provided a definitive legal pathway for exchange-traded funds (ETFs) and trusts to stake their crypto assets. This crucial announcement, made by Treasury Secretary Scott Bessent, enables these entities to share staking rewards directly with investors, potentially opening new avenues for institutional participation in the crypto market. Market experts, such as Bill Hughes from ConsenSys, emphasize the significance of these new provisions for the industry's growth and integration into traditional finance.
Bitcoin Stages Recovery Amidst Market Volatility
Concurrently, Bitcoin (BTC) has showcased a strong rebound, climbing above $105,000 after experiencing a sharp decline that saw its price briefly drop below the $100,000 threshold. This earlier dip had incited widespread fear and a wave of liquidations across the market. However, BTC's subsequent bounce back suggests renewed investor confidence, with many closely watching for potential relief from an impending US government shutdown, which could further influence market dynamics.