Recently, several well-known institutions in the crypto assets industry jointly submitted an open letter to the U.S. Securities and Exchange Commission (SEC), attracting widespread attention from the market. This document, signed by Jito Labs, Bitwise, Multicoin Capital, VanEck, and Solana Policy Institute, primarily suggests the adoption of liquid staking tokens (LST) as a staking mechanism in exchange-traded products (ETP).

This move aims to influence several Solana ETF applications submitted in June of this year, including eight major applications and one additional application. If this proposal is adopted, it could have a profound impact on the Solana ecosystem and the broader Crypto Assets market.

Industry experts point out that using LST as a staking mechanism may increase the flexibility and efficiency of ETF products. However, this proposal has also sparked discussions about regulation, risk management, and market impact.

As the Crypto Assets market continues to evolve, regulators face the challenge of balancing innovation with investor protection. The SEC's response to this proposal will be closely followed and may provide important guidance for the future direction of Crypto Assets ETFs.

Currently, market participants are closely following the SEC's movements, hoping to open new avenues for Crypto Assets investment within a regulatory framework. Regardless of the final outcome, this initiative reflects the industry's ongoing efforts to promote the mainstream adoption of Crypto Assets.