BlackRock Goes Crypto-Courting: SEC Meeting Puts Tokenization & Staking in Regulatory Crosshairs

Wall Street’s $10T gorilla knocks on the SEC’s door—because when BlackRock talks, regulators listen (or pretend to). The agenda? Cutting through the bureaucratic fog around tokenized assets, proof-of-stake mechanics, and those pesky ETP rules that keep TradFi dinosaurs up at night.

Inside the velvet rope: Behind closed doors, Larry Fink’s empire pushes for clearer rules on blockchain-based securities. No more ’come back in 5 years’ delays—not when competitors like Fidelity are already eating their lunch.

The staking sting: Insiders whisper the real battle is over yield-bearing crypto products. SEC Chair Gensler hates the word ’interest’ unless it’s from a FDIC-insured bank—but BlackRock’s army of lawyers just might change his mind.

Tokenization endgame: Imagine a world where every stock, bond, and vintage wine gets a blockchain twin. Now imagine the SEC charging $2.6M per filing to approve each one. Some revolutions come with a convenience fee.

Closing thought: When the world’s largest asset manager starts demanding crypto rule clarity, it’s not adoption—it’s a hostage negotiation. The SEC’s coffee budget just tripled.

BlackRock Meets With SEC Officials 

According to a memo, the meeting focused on staking, tokenization, and crypto ETF standards, which are crucial topics during the ongoing evaluation of the cryptocurrency market. The talks could have a major impact on the digital asset sector. The world’s largest asset manager, which recently reported $32 million in Q1 revenue from its iShares Bitcoin Trust, is now expanding its presence in the crypto ecosystem. The asset manager disclosed in its Q1 2025 13F filing that it held $5.4 billion in Bitcoin-related equities, with most of its exposure tied to investments in Michael Saylor’s Strategy. 

According to the meeting memo, BlackRock reviewed its digital asset offerings, including the iShares Bitcoin Trust (IBIT), the proposed iShares ethereum Trust (ETHA), and the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). 

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

Details Of The Meeting 

BlackRock used the meeting with SEC officials to solicit input about how current and future crypto products could be regulated under federal securities law as the digital asset market matures. The meeting involved senior representatives from regulatory affairs, legal, digital assets, and ETF markets. BlackRock had also engaged with the SEC on April 1 on crypto policy matters, where it discussed technical elements of in-kind redemptions for crypto ETPs. It also shared a detailed document on existing workflows under the current cash model. It also discussed how those systems could be adopted to support alternative models for crypto-based funds. 

The asset manager also outlined its views about incorporating staking features into ETPs and aligning them with recent proposals reviewed by the SEC. Staking has become crucial during discussions about whether Proof-of-Stake asset exposure within exchange-traded products can meet regulatory expectations without compromising liquidity or investor security. BlackRock also asked for feedback on how tokenization efforts could be structured within existing security frameworks. It also suggested interim standards for crypto ETP issuers and asked the SEC to consider codified guidance that may apply ahead of broader rulemaking. 

BlackRock and the SEC also discussed whether a crypto ETP satisfies regulatory thresholds for exchange listing, including assessment of market integrity and investor safeguards. 

Crypto Task Force Meeting With Various Stakeholders 

The SEC’s Crypto Task Force has held discussions with various stakeholders as the agency takes a more inclusive approach to the digital asset industry compared to years past. The SEC, under former Chair Gary Gensler, adopted a “regulation by enforcement” stance, warning that crypto was rife with fraud and manipulation. Gensler brought several cases against crypto firms, many of which were dropped after he stepped down in January.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.