Hong Kong may include an Ethereum stake option for exchange traded fund (ETFs) that issue spot Ethereum.
The Securities and Futures Commission of Hong Kong (SFC), if it allows stakes, local Ethereum investors (ETHETFs can generate passive income through the validation of transactions on Ethereum’s network.
A stake is used to secure a tree. process Token holders can lock their tokens in a certain period and earn rewards as a percent of tokens staked. The process of staking is made easier by third-party services. Essentially, staking is a way of earning rewards – extra money – while holding onto specific cryptocurrencies.
Hong Kong’s move contrasts sharply with SEC perceptions of stakes, who see it as an illegal investment and violation of US securities laws. The United States could be influenced by a global adaptation of ETF spot staking.
Staking and its role in U.S.
Coinbase is a proponent of staking and has done so in the US. battling the SEC Over the legality of this practice. Coinbase is of the opinion that core stake is not a financial instrument, since it doesn’t involve an investment in money and because the opportunity costs of staking are not investments.
Coinbase is of the opinion that users’ rewards should be considered as compensation for service delivered. staking Does not meet an “expectation of profit” The following are some examples of how to get started: consists of ministerial maintenance Investing in alternative ways is more effective than traditional methods.
The crypto.news website has published its February edition. reported Singaporean crypto investors are very optimistic about staking. 55% have staked through a centralized crypto exchange. Other crypto-hotspots around the world are also staking.
Wednesday the U.S. House of Representatives convened. passed Financial Innovation and Technology for the 21st Century ActFIT21This is a way of communicating to the crypto-industry that they are welcome in the US. Additionally, the SEC has approved spot Ethereum exchange-traded funds, which led to the Ethereum price (ETH) rising to $3900.
Many US-based businesses, such as Fidelity, are not planning to stake their shares due to SEC regulations. stake Ethereum ETFs are expected to be launched in the future.
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Source: crypto.news