Crypto Industry Pushes SEC for Clarity on Staking Rules
A coalition of major crypto firms is urging the U.S. Securities and Exchange Commission (SEC) to clarify that crypto staking and related services are not subject to securities regulations. The Crypto Council for Innovation and the Proof of Stake Alliance (POSA) argue that staking is a technical mechanism for securing blockchain networks rather than an investment scheme. Companies like Consensys, Kraken, Ava Labs, and Galaxy support this initiative, emphasizing the need for regulations that foster innovation. They request principles-based guidance for staking, akin to the SEC’s recent stance on proof-of-work mining. This appeal coincides with the SEC's efforts to provide regulatory clarity in the digital assets sector, especially following leadership changes that have shifted the agency's approach towards a more supportive stance for crypto innovation. The letter also proposes a framework for staking service providers, advocating for user disclosures, transparency in reward distribution, and user control over staked assets.
