Blackrock Discusses Crypto Regulation With SEC to Push Urgent Rule Overhaul

Blackrock is pushing a bold crypto rule revamp at the SEC, spotlighting urgent reforms for staking, tokenization, and ETPs to reshape digital asset market regulation.

Blackrock’s Crypto Playbook Drops—SEC Pressured to Rethink Digital Asset Regulation

Blackrock, the world’s largest asset manager, met with staff from the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force on May 9 to discuss key regulatory issues facing the digital asset industry. The meeting, detailed in a memorandum published by the SEC, revealed that Blackrock aimed to initiate dialogue on the evolving treatment of crypto products, including staking, tokenization, and the approval process for exchange-traded products (ETPs). According to the SEC:

The topic discussed was approaches to addressing issues related to regulation of crypto assets.

Blackrock’s delegation, which included leaders from regulatory affairs, legal, compliance, and digital asset divisions, presented a five-point agenda. First, the firm gave an update on market developments involving three of its flagship digital asset products: the Ishares Bitcoin Trust (IBIT), the Ishares Ethereum Trust (ETHA), and the Blackrock USD Institutional Digital Liquidity Fund (BUIDL). Second, the team sought to address how staking—particularly within ETPs—could be regulated and whether the SEC would consider rules to allow staking features in such investment vehicles. Third, Blackrock proposed a discussion on the regulatory path for tokenizing traditional securities and incorporating them into capital markets under the current federal securities framework.

The fourth topic focused on the standards for approving crypto ETPs. Blackrock asked the SEC to outline specific criteria that would satisfy the requirements of Section 6(b) of the Exchange Act. The firm also suggested that the agency consider an interim framework to guide the activities of crypto ETP issuers until permanent rules are finalized. Finally, the asset manager highlighted the need to establish clear rules for options trading on crypto ETPs. In particular, they recommended setting position and exercise limits based on the liquidity of the underlying digital assets.

The SEC established the Crypto Task Force under the leadership of Commissioner Hester Peirce after former Chair Gary Gensler’s departure. The agency has shifted toward a more crypto-friendly posture in line with President Donald Trump’s pro-crypto policies. Since its formation, the task force has engaged with a range of industry participants beyond Blackrock and has also convened multiple crypto roundtables to discuss market practices, regulatory challenges, and investor protection frameworks in the rapidly evolving digital asset sector.