The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on whether to allow the Franklin Ethereum ETF to stake its Ethereum holdings. The filing was made on March 10, 2025, by Cboe BZX Exchange, Inc.
The ETF is now requesting approval to stake that ETH and receive rewards—something any typical Ethereum holder could do. This would enable the ETF to earn passive income from staking and reward its investors. However, the SEC has not yet approved this change. Instead, the agency has decided to begin formal proceedings to evaluate whether this staking proposal aligns with investor protection rules under the Securities Exchange Act.
The agency is particularly reviewing whether the change follows the rules of fair and secure market practices under Section 6(b)(5) of the Securities Exchange Act. This section mandates that the rules of national securities exchange, designed to prevent fraudulent and manipulative acts and practices.
The commission is also inviting the public to submit comments, data and arguments to the SEC about this proposal. Comments must be submitted within 21 days after the announcement is officially published in the Federal Register.
Rebuttal comments must be submitted within 35 days. This move doesn’t mean the proposal is rejected but it simply gives the SEC more time to review it.
Also Read: BREAKING: US SEC Delays Decision on Bitwise Dogecoin ETF, Grayscale HBAR ETF
