The SEC has approved in-kind creation and redemption processes for all spot Bitcoin and Ethereum ETFs, allowing institutional investors to use BTC or ETH directly instead of cash. This decision, a major policy shift under SEC Chair Paul Atkins, aims to enhance market efficiency and reduce operational complexities for ETF issuers like BlackRock. Additionally, the SEC increased position limits for options trading on Bitcoin ETFs, suggesting a growing acceptance of crypto assets within traditional regulatory frameworks.

The SEC has stated that liquid staking does not violate securities laws, indicating that participants are not required to make disclosures under these regulations. This staff statement clarifies the roles of liquid staking providers and suggests that compliance with the guidance will protect crypto industry participants from potential lawsuits.

El Salvador's Comisión Nacional de Activos Digitales (CNAD) is collaborating with the U.S. SEC to create a cross-border regulatory sandbox for digital assets. The constructive meeting highlighted El Salvador's innovative regulatory framework, which has attracted major crypto companies, and aims to serve as a case study for the SEC as it seeks to revise its approach to crypto regulation.