The newly established Crypto Task Force by the U.S. Securities and Exchange Commission (SEC) met with the CEOs of Jito Labs and Multicoin Capital, which has led to positive momentum for Jito’s native token, JTO. The discussion during the meeting centered on the possibility of incorporating staking into crypto exchange-traded products (ETPs), which could have significant implications for the crypto industry.

This development has led to growing optimism within the market, particularly for Jito’s ecosystem, with JTO increasing by 16.67%, reaching a two-month high of $3.58 after the meeting. This rise in price highlights the optimism surrounding the potential inclusion of staking in ETPs, which could benefit investors and contribute to the growth of blockchain networks.

SEC’s Crypto Task Force and Staking in ETPs

The SEC’s Crypto Task Force is considering incorporating staking into crypto ETPs, which would allow a portion of the assets to be staked through service providers running validators while still allowing for timely redemptions. The task force is also evaluating the possibility of minting a liquid staking token for staked assets. These potential changes offer a more efficient and investor-friendly model for crypto assets, which could lead to increased adoption and clearer regulatory frameworks.

Historically, the SEC has been cautious about including staking in ETPs due to the “unbonding period,” which can slow down redemptions and create tax issues for investors. Despite these concerns, this meeting signals a more open approach towards crypto integration into traditional financial systems, which is a positive sign for the broader industry.

JTO’s Surge After SEC Meeting

Following the SEC meeting, Jito’s native token, JTO, saw a notable 16.67% rise, reaching a two-month high of $3.58. While it has since retraced to $3.1, it is still up 28.87% on the weekly charts, showing continued upward momentum.

JTO’s bullish trend is also reflected in the market dynamics. There has been a noticeable increase in buying activity, with long positions in futures contracts dominating the market. Data from Coinalyze shows that 53% of futures contracts were long positions, indicating that most traders expect further price increases. Additionally, the asset’s spot netflows turned negative over the past 24 hours, meaning that more investors are choosing to accumulate JTO by moving it to private wallets or cold storage, rather than selling.

Positive Sentiment Shift

The shift in sentiment has also contributed to the positive outlook for JTO. After being negative for several days, the weighted sentiment for JTO has turned positive, signaling that investor confidence is growing. This change suggests that more participants are optimistic about the token’s future.

What’s Next for JTO?

As the SEC works to establish a more positive relationship with the crypto community, markets are responding favorably. This shift is reflected in Jito’s price action, which has seen strong growth following the meeting.

If the current market conditions remain stable, JTO could aim for new price levels, potentially reaching as high as $3.7, or even $4. However, if selling pressure increases, JTO may drop below $3. Traders and investors will need to closely monitor price movements and key support levels to assess the token’s short-term outlook.

The SEC’s growing engagement with the crypto industry could present additional opportunities, and Jito’s recent price rise is just one example of the positive trend for crypto assets. As the market continues to evolve, JTO and other cryptocurrencies may experience fluctuations, but regulatory clarity and institutional adoption could support long-term growth.