The staking craze sweeps the market, ETH becomes the focus

In 1688, Edward Lloyd's coffee house in London became a gathering place for captains seeking navigation insurance. Wealthy merchants signed under the details of ships to become "underwriters", using their personal wealth to guarantee high-risk maritime ventures. This model has evolved over time and has now been digitally reshaped in the cryptocurrency space: participants gain returns by taking on asset risks while enhancing the overall security and credibility of the system.

On May 29, 2025, the U.S. government clearly stated that staking would not trigger legal issues, marking a milestone declaration. The staking mechanism allows users to lock tokens to enhance network security and earn stable returns. Validators use the staked tokens to validate transactions, generate new blocks, and ensure the blockchain operates smoothly, receiving newly minted tokens and transaction fees as compensation. Without stakers, proof-of-stake networks like Ethereum would not be sustainable.

Previously, due to regulatory uncertainty, many institutions could only stand by, while retail stakers enjoyed annual returns of 3%-8%. But now, the situation has changed.

Stake Wave Approaches

On July 3rd, the first fund in the United States that provides direct exposure to cryptocurrencies and includes staking rewards officially launched. The fund holds SOL tokens through its subsidiary in the Cayman Islands and stakes at least half of its holdings.

Many platforms have also launched related services:

• A trading platform offers ETH and Solana stake services for US users.
• Another platform adds Bitcoin staking feature through the Babylon protocol.
• VeChain launches a $15 million "StarGate" stake program
• Bit Digital sold off all its Bitcoin mining operations to focus on Ethereum staking.

Major Changes in the Regulatory Environment

The staking guidelines released by the U.S. SEC indicate that staking activities conducted to assist blockchain operations are compliant and are not considered high-risk investments or securities. This includes individual staking, delegating staking to others, and staking through trusted platforms. The only behavior that requires caution is the commitment to guarantee returns, especially operations that combine staking with lending or launch so-called "DeFi composite products" with promised fixed returns.

On the other hand, the "CLARITY Act" proposed by the U.S. Congress aims to clarify the regulatory jurisdiction of different digital assets. The act introduces a new category called "investment contract assets," establishes specific standards for defining digital assets as securities or commodities, and sets up a "maturity" assessment mechanism for blockchain projects or tokens.

These changes create a clearer and safer operating environment for cryptocurrency staking. Staking rewards are taxed as ordinary income when "dominant control" is obtained; subsequent sales that realize profits are subject to capital gains tax. All staking income must be reported to the IRS.

Ethereum Becomes the Focus

Despite Ethereum's price remaining around $2500, its staking data is impressive. The total amount of staked ETH has surpassed 35 million, setting a new record and accounting for nearly 30% of the total circulating supply. This achievement in infrastructure development is particularly valuable in the current regulatory environment.

Business Trends

Many companies have begun to make large-scale arrangements for ETH staking:

• BitMine Immersion Technologies completed $250 million in financing, specifically for the purchase and stake of ETH.
• SharpLink Gaming expands its ETH reserves to 198,167 and achieves 100% full stake.
• Multiple Ethereum ETF issuers are applying for staking qualifications, with a high probability of approval reaching 95% in the coming months.

These staking ETFs are expected to reverse the outflow of funds from Ethereum funds, providing investors with dual returns of price exposure and staking yields.

The Integration of Cryptocurrency and Traditional Finance

Traditional finance has long struggled to understand the value proposition of cryptocurrencies, but the concept of "yield" is undoubtedly a language familiar to Wall Street. A regulated crypto fund that generates a staking yield of 3-5% per year while also offering the appreciation potential of the underlying asset is highly attractive to investors.

When pension funds can gain exposure to Ethereum through compliant ETFs, while the fund generates returns by ensuring network security, it is undoubtedly a milestone for the industry.

The network effect has formed a clear context: more institutions participating in staking → improved network security → attracting more users and developers → expanded application scale pushing up transaction fees → further increase in staking yields. This is a virtuous cycle that benefits all participants.

Investors do not need to deeply understand blockchain technology or the concept of decentralization; they just need to grasp the basic logic of "holding assets to profit". Essentially, the network requires security assurance, and the guardians should receive reasonable compensation.