tl;dr
BlackRock met with the SEC Crypto Task Force on May 9 to discuss crypto regulatory issues, including tokenization, staking, and exchange-traded product (ETP) approval frameworks. They reviewed digital asset offerings like the iShares Bitcoin Trust, iShares Ethereum Trust, and the BlackRock USD Insti...
On May 9, BlackRock met with the US Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss regulatory guidance concerning tokenization, staking, and exchange-traded product (ETP) approval frameworks. The meeting reviewed BlackRock’s digital asset offerings, such as the iShares Bitcoin Trust, the proposed iShares Ethereum Trust, and the BlackRock USD Institutional Digital Liquidity Fund.
BlackRock sought clarity on how these products could be regulated under federal securities laws as the digital asset market evolves. The discussion included senior experts from regulatory affairs, legal teams, digital assets, and ETF markets. This dialogue followed a previous session on April 1, highlighting BlackRock's ongoing engagement with the SEC regarding crypto policies.
The firm provided technical insights on in-kind redemptions for crypto ETPs, emphasizing adaptation from existing cash models to alternative structures for crypto-based funds. Furthermore, BlackRock shared its approach to incorporating staking features into ETPs—a key topic as regulators debate proof-of-stake asset exposure’s compatibility with liquidity rules and investor protections.
Tokenization efforts were also addressed, with BlackRock seeking feedback on integrating such mechanisms into current securities frameworks. The firm suggested interim regulatory standards for crypto ETP issuers, advocating for clear, codified guidance prior to comprehensive rulemaking.
BlackRock discussed criteria under Section 6(b) of the Exchange Act for evaluating crypto ETPs’ compliance for exchange listing, focusing on market integrity and investor safeguards. Additionally, they raised technical questions regarding position and exercise limits for crypto ETPs, requesting clarification on structuring these limits relative to liquidity thresholds of the underlying crypto assets or shares.