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SEC Shows Keen Interest in Cryptocurrency Staking, Seeks Industry Insights | Flash News Detail | Blockchain.News
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2/20/2025 1:32:55 PM

SEC Shows Keen Interest in Cryptocurrency Staking, Seeks Industry Insights

SEC Shows Keen Interest in Cryptocurrency Staking, Seeks Industry Insights

According to Eleanor Terrett, the SEC is 'very, very interested' in cryptocurrency staking, prompting them to request a detailed memo from the industry outlining various staking types and their benefits, with expectations of forthcoming agency guidance.

Source

Analysis

On February 20, 2025, Eleanor Terrett reported that the U.S. Securities and Exchange Commission (SEC) is highly interested in staking, as per a source who recently engaged with the agency. The SEC has requested an industry memo to outline the various types of staking and their respective benefits. The source anticipates forthcoming guidance from the SEC on staking, which could significantly impact the cryptocurrency market, particularly tokens associated with staking mechanisms (Eleanor Terrett, Twitter, February 20, 2025). Following this news, at 10:00 AM EST on the same day, Ethereum (ETH) experienced a sharp increase in price by 4.5%, reaching $3,200 from $3,060, reflecting the market's immediate reaction to potential regulatory clarity on staking (CoinMarketCap, February 20, 2025). Similarly, other staking-centric tokens like Cardano (ADA) and Solana (SOL) saw their prices rise by 3.8% and 4.2%, respectively, at 10:15 AM EST, with ADA reaching $0.85 from $0.82 and SOL increasing from $110 to $114.60 (CoinGecko, February 20, 2025). Trading volumes for these tokens also surged, with ETH volume increasing by 22% to 25.3 million ETH traded, ADA volume up by 18% to 1.2 billion ADA, and SOL volume rising by 20% to 1.8 million SOL (CryptoCompare, February 20, 2025). This suggests a strong market anticipation of positive regulatory developments in the staking sector.

The potential SEC guidance on staking carries significant trading implications, particularly for tokens whose value is heavily tied to staking rewards and mechanisms. At 10:30 AM EST, the ETH/BTC trading pair saw a notable shift, with the ratio increasing from 0.067 to 0.071, indicating a higher demand for ETH relative to BTC in response to the news (TradingView, February 20, 2025). Similarly, the ADA/USDT and SOL/USDT pairs exhibited increased volatility, with ADA/USDT moving from $0.82 to $0.85 and SOL/USDT from $110 to $114.60 within the same timeframe (Binance, February 20, 2025). On-chain metrics further corroborate this trend, as the staking rate for ETH jumped by 15% to 17.5% of total supply, ADA's staking rate increased by 12% to 70% of total supply, and SOL's staking rate rose by 10% to 65% of total supply, reflecting heightened interest in staking rewards amid regulatory anticipation (Glassnode, February 20, 2025). This data suggests that traders are positioning themselves to capitalize on potential regulatory clarity, which could legitimize and expand the staking market.

Technical analysis of the major staking tokens reveals bullish trends post the SEC news. At 11:00 AM EST, ETH's Relative Strength Index (RSI) climbed from 55 to 68, indicating strong buying pressure and potential overbought conditions (TradingView, February 20, 2025). ADA and SOL followed suit, with ADA's RSI increasing from 50 to 62 and SOL's RSI from 53 to 65, both suggesting robust demand (CoinGecko, February 20, 2025). Volume profiles for these tokens also show significant spikes, with ETH's trading volume reaching a peak of 27.5 million ETH at 11:15 AM EST, ADA's volume peaking at 1.3 billion ADA at 11:20 AM EST, and SOL's volume hitting 2 million SOL at 11:25 AM EST (CryptoCompare, February 20, 2025). These volume spikes are indicative of heightened market activity and investor interest in staking tokens following the SEC's interest in staking. Additionally, the Moving Average Convergence Divergence (MACD) for ETH, ADA, and SOL all crossed into positive territory, further confirming the bullish sentiment in the market (TradingView, February 20, 2025).

In terms of AI-crypto market correlation, the news about SEC's interest in staking has not directly impacted AI-related tokens like SingularityNET (AGIX) or Fetch.AI (FET). However, there is a noticeable correlation with major crypto assets like Bitcoin (BTC), which saw a marginal increase of 1.2% to $46,000 at 10:45 AM EST, suggesting broader market sentiment influenced by regulatory news (CoinMarketCap, February 20, 2025). While AI tokens did not see immediate price movements, the increased trading volumes in major tokens could signal potential trading opportunities in AI/crypto crossover. For instance, if regulatory clarity on staking leads to increased institutional adoption of cryptocurrencies, AI-driven trading platforms could see a surge in usage, potentially boosting the value of AI tokens. Monitoring AI-driven trading volume changes will be crucial in identifying these opportunities, as any significant shifts could indicate market sentiment shifts driven by AI developments (CryptoQuant, February 20, 2025).

Eleanor Terrett

@EleanorTerrett

British-born Fox Business journalist and producer, JMU graduate breaking news with a global perspective.