Cryptocurrency exchange HashKey has received approval from Hong Kong regulators to offer staking services, potentially broadening the institutional appeal of proof-of-stake investments such as the spot Ether exchange-traded funds (ETFs).

HashKey was granted approval on April 10 after the Hong Kong Securities and Futures Commission (SFC) provided regulatory guidance on staking services to Licensed Virtual Asset Trading Platforms (VATPs) and authorized funds, the company disclosed on social media. 

HashKey said it had become “one of the first” regulated Hong Kong exchanges to offer staking services.

Source: HashKey Group

The approval was granted after the China Securities Regulatory Commission (CSRC) recognized the potential benefits of crypto staking services, the SFC said.

CSRC “is aware of the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn returns from virtual assets in a regulated market environment,” the SFC said, according to a translated version of the announcement that appeared on Asian media outlet PANews. 

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Taking the lead on ETH staking

The SFC approval means HashKey can take the lead in offering staking services for spot Ether (ETH) ETFs, according to the exchange’s managing director, Terence Pu.

“In the near future, investors will not only be able to hold Ether ETFs to obtain staking income but also directly hold ETH and obtain additional income through our staking services,” Hu said in a translated version of his statement. 

Hong Kong approved its first Ether and Bitcoin (BTC) ETFs in April of last year, giving institutional investors access to an in-kind subscription model for digital assets.

Hong Kong is ahead of the curve in allowing ETF investors to earn a passive yield on their digital assets. In the United States, the Securities and Exchange Commission (SEC) green-lighted spot Ether ETFs last year but did not allow staking strategies to be included.

For many US investors, staking is the missing link that could make US-based Ether ETFs more attractive to institutional investors. 

With the election of US President Donald Trump and the installation of a pro-crypto SEC Chair, investors are growing confident that staking services are coming to the US Ether ETFs in the near future.

Source: James Seyyfart

Based on Bloomberg analyst James Seyffart’s potential timeline, approvals could be granted as early as May.

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The US Securities and Exchange Commission (SEC) has dismissed a lawsuit against Nova Labs, developer of decentralized wireless network Helium, for allegedly issuing unregistered securities, Helium stated in an April 10 blog post. 

Filed in January 2025, the lawsuit was among the SEC’s final enforcement actions against a cryptocurrency developer under former Chair Gary Gensler, who stepped down from his post on Jan. 20 after US President Donald Trump took office. 

The dismissal with prejudice means the blockchain developer cannot be charged with similar violations again for issuing in 2019 its native token Helium (HNT), the company said. 

“[W]e can now definitively say that all compatible Helium Hotspots and the distribution of HNT, IOT, and MOBILE tokens through the Helium Network are not securities,” Helium said. 

“[T]he outcome establishes that selling hardware and distributing tokens for network growth does not automatically make them securities in the eyes of the SEC [and] that the SEC cannot bring these charges against Helium again,” it added.

Source: Helium

The SEC’s Helium reversal came the same day Trump-nominee Paul Atkins formally replaced Gensler as SEC Chair after a lengthy confirmation process in the Senate. 

Helium is a blockchain network designed to let “anyone build and own massive wireless networks,” according to its website. The protocol reports having roughly 375,000 active hotspots. 

According to CoinGecko, HNT has a market capitalization of approximately $480 million as of April 10 — down from highs of more than $5 billion in November 2021. 

HNT’s price since 2019. Source: CoinGecko

Related: SEC will drop its appeal against Ripple, CEO Garlinghouse says

Changing policy stance

Under Gensler, the SEC brought upward of 100 charges against Web3 developers for various alleged securities violations. 

Since Trump took office, the SEC has sharply reversed course, dropping numerous charges against crypto firms, including Coinbase, Kraken, Ripple and Uniswap. 

Trump has positioned himself as a pro-crypto President, promising to make America the “world’s crypto capital,” appointing industry-friendly leaders to key regulatory posts, and ordering the federal government to create a national Bitcoin (BTC) reserve.

For some crypto executives, Trump’s policies — such as announcing sweeping tariffs on US imports in April — threaten to stymie crypto’s progress.

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North Carolina (NC) representative Neal Jackson introduced the North Carolina Digital Asset Freedom Act on April 10. The bill proposes that qualifying “digital assets” be accepted as a legally recognized form of payment and for taxes.

Although the language of the bill does not specifically mention Bitcoin (BTC), there are several provisions laid out that make BTC uniquely qualified under the bill’s definition of a “digital asset.”

These stipulations include a minimum market capitalization of $750 billion and a daily trading volume of over $10 billion, a market history of 10 years or more, proven censorship resistance, proof-of-work consensus, lack of a central authority, 99.98% or more network uptime, and a maximum supply cap. The bill read:

“The General Assembly further finds that decentralized digital assets, which are not governed by any central entity or foundation, align with the economic principles of limited, noninflationary money and are capable of ensuring the security and integrity of transactions.”

Jackson’s bill is merely the latest in state-led Bitcoin strategic reserve legislation in the United States amid inflation concerns, high US federal debt and a depreciating currency.

NC Digital Asset Freedom Act. Source: North Carolina Legislature

Related: North Carolina bills would add crypto to state’s retirement system

North Carolina takes a firm stance against CBDCs

Former North Carolina Governor Roy Cooper vetoed a bill banning a central bank digital currency (CBDC) in July 2024. At the time, Cooper characterized the bill as “premature, vague, and reactionary” to threats that have not yet materialized.

In August 2024, the North Carolina House of Representatives overrode Cooper’s veto in a definitive and bipartisan 73-41 vote.

The North Carolina Senate followed suit by overriding Cooper’s veto in a 27-17 vote and passed the anti-CBDC legislation into law in September 2024.

North Carolina’s anti-CBDC legislation. Source: North Carolina Legislature

Dan Spuller, the head of industry affairs at crypto advocacy organization the Blockchain Association, applauded the action taken by NC lawmakers to push back against the tide of CBDCs.

“This bill should have never been vetoed, and Governor Cooper blew an opportunity to send a strong message to the Federal Reserve that NC stands united against CBDCs,” Spuller wrote in a Sept. 9 X post.

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