SEC Extends Review of Proposed Rule Change for Grayscale Ethereum Trust
On April 14, 2025, the Securities and Exchange Commission (SEC) announced the extension of its timeline to review a proposed rule change submitted by NYSE Arca, Inc.. This rule change, originally filed on February 14, 2025, seeks to modify regulations related to the Grayscale Ethereum Trust ETF and the Grayscale Ethereum Mini Trust ETF, specifically to allow the staking of Ether held by these trusts.
Background and Public Comment Period
The SEC published the proposed amendments for public comment on March 3, 2025, as part of compliance with the Securities Exchange Act of 1934, under Section 19(b)(1) and Rule 19b-4. According to the Act, the Commission typically has a 45-day window after the publication of such proposals to approve, reject, or further investigate the rule changes. This initial deadline is set for April 17, 2025.
However, the SEC has decided to extend this review period to allow for a more thorough evaluation of the implications and details surrounding the proposed staking rule.
New Deadline for Final Action
By invoking Section 19(b)(2) of the Act, the SEC has designated June 1, 2025, as the new deadline for its final action on this matter, whether that outcome is approval, disapproval, or the initiation of further proceedings to explore the proposal in greater depth.
The decision for this extension comes without any public comments received on the original filing, prompting the Commission to seek additional time to ensure all relevant aspects are adequately considered before reaching a final resolution.
