The staking wave sweeps the crypto market, and Ethereum may become the biggest winner

On May 29, 2025, the U.S. government clearly stated that staking activities would not lead to legal disputes, a decision that triggered a major change in the crypto market. The staking mechanism allows users to enhance network security by locking tokens and earn stable returns. Validators use the staked tokens to verify transactions, package new blocks, and ensure the smooth operation of the blockchain, receiving newly minted tokens and transaction fees as a reward.

Previously, due to regulatory uncertainty, many institutional investors took a wait-and-see approach to stake. However, with the clarification of regulations, the staking craze is sweeping across the entire crypto market.

On July 3rd, the first fund in the United States to provide direct exposure to cryptocurrency with staking rewards, the Rex-Osprey Solana + Staking ETF, officially launched. The fund holds SOL tokens through a subsidiary in the Cayman Islands and stakes at least half of its holdings.

At the same time, several well-known platforms have also launched or expanded their staking services:

• A trading platform has launched staking services for Ethereum and Solana for US users.
• Another trading platform has added Bitcoin staking functionality through the Babylon protocol.
• VeChain has launched a $15 million "StarGate" stake program.
• Bit Digital has completely sold off its Bitcoin mining business and is now focusing on Ethereum staking.

Behind this series of actions, there are two key regulatory changes driving it:

1. The SEC's staking guidelines released in May 2025 clarify that most staking activities do not fall under the category of "investment contracts," thus there is no need to worry about violating investment regulations.

2. The CLARITY Act proposed by the U.S. Congress aims to clarify the regulatory authority over different digital assets and protect the rights of node operators, stake participants, and self-custody wallet users.

These regulatory measures create a clearer and safer operational environment for cryptocurrency staking.

In this wave of staking frenzy, Ethereum may become the biggest winner. Although its price is still hovering around $2500, the staking data is impressive. The total amount of staked ETH has exceeded 35 million, reaching a historic high and accounting for nearly 30% of the total circulating supply.

Many companies are actively laying out Ethereum staking:

• BitMine Immersion Technologies completed a $250 million financing, specifically for purchasing and staking Ether.
• SharpLink Gaming has expanded its ETH reserves to 198,167 and achieved 100% staking.
• Multiple Ethereum ETF issuers are lining up to apply for staking qualifications.

Analysts predict that the probability of stake ETFs receiving regulatory approval in the coming months is as high as 95%. These products are expected to reverse the capital outflow dilemma that Ethereum funds have faced since their inception.

For traditional financial institutions, "yield" is a language they are familiar with. A regulated crypto fund that generates 3-5% staking returns annually while offering the appreciation potential of the underlying assets is an extremely attractive combination.

As more institutions participate in staking, the network's security will improve, attracting more users and developers, which in turn will drive up transaction fees, creating a positive feedback loop for staking rewards. This network effect is gradually becoming apparent and is expected to benefit all market participants.