Crypto Industry Pushes SEC for Clarity on Staking Rules
The post Crypto Industry Pushes SEC for Clarity on Staking Rules appeared on BitcoinEthereumNews.com.
In brief The Crypto Council for Innovation has asked the SEC to clarify that staking is not an investment activity. In an open letter, it urged alignment with prior SEC positions on mining, stablecoins, and memecoins. It also proposed industry standards for transparency and user control in staking services. A coalition of major crypto firms is calling on the U.S. Securities and Exchange Commission (SEC) to clearly state that crypto staking and associated services do not fall under securities regulations. In an open letter sent Wednesday to the SEC Crypto Task Force, the Crypto Council for Innovation and a project under its umbrella, the Proof of Stake Alliance (POSA), argued that staking is a technical mechanism used to secure blockchain networks, not an investment scheme. Crypto staking is the process by which users participate in the operation of a proof-of-stake (PoS) blockchain by locking up, or “staking,” their tokens to help validate transactions and secure the network. In return, participants earn staking rewards. Backed by companies such as Consensys, Kraken, Ava Labs, and Galaxy, the coalition said the U.S. needs to show that it is adopting regulations that support innovation and urged the SEC to issue a public statement clarifying its position. “The ask is straightforward: principles-based guidance for staking and staking services, similar to the SEC’s recent statement on proof-of-work mining,” the council said in a statement. “The goal is to protect users while enabling growth of the staking industry, which is critical to the functioning of PoS blockchain networks,” it added. Clarity for all The request comes amid broader efforts by the SEC’s Crypto Task Force to bring regulatory clarity to the digital assets sector. Under the previous Chair, Gary Gensler, the agency faced criticism from what many in the crypto industry viewed as regulation by enforcement. However,…
Filed under: News - @ May 1, 2025 4:24 am