The Securities and Exchange Commission (SEC) has released a notice about a proposed rule change by NYSE Arca for the Grayscale Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF. The proposed change aims to allow the Trusts to stake ether, a type of cryptocurrency, to earn rewards. This proposal responds to the update in Ethereum's network from a proof-of-work to a proof-of-stake consensus mechanism, which is more energy-efficient. The SEC is inviting public comments on whether this change complies with securities regulations and serves the best interests of the investors and the market.
Simple Explanation
The Securities and Exchange Commission (SEC) is thinking about letting some big groups use a special kind of money called ether (like a digital coin) in a new way called "staking," which helps them earn more coins. They want to see if this idea is good for everyone and are asking people what they think.