Lummis ETP Staking Letter

Crypto friends, this is a very important letter, and may go down in history as a turning point for Proof of Stake.

Senator Lummis has written a great letter asking the SEC to justify why they prevent PoS crypto ETPs (Exchange Traded Products) from including staking rewards as part of the ETP.

Lummis & co clearly have understood bothe the benefits and risks involved, not only for the ETP investors, but also for the blockchains.

While the blockchains get increased staking participation which is good for security, there is a risk that if too few large ETP products exist this could hurt decentralization and security. Of course this risk is also a risk for the ETP investors too.

My personal take is this hints that ETPs may be forced to disclose underlying decentralization to investors, which would be an amazing development and show a maturity in the space.

Another important risk that is highlighted is slashing, and the adverse impacts this has on risks to ETP investment in specific PoS cryptos.

Overall this letter shows a great understanding of PoS consensus and it should give us all real hope that ETPs in the US could be very good news for crypto in general, PoS in particular and PoS that doesn't use slashing especially.

I would advise you to read it for yourselves.