US crypto groups urge SEC for clarity on staking
Nearly 30 crypto advocacy groups, led by the Crypto Council for Innovation (CCI), have requested clear regulatory guidance from the SEC on crypto staking and staking services. The CCI's Proof of Stake Alliance (POSA) emphasized that staking is a technical process rather than an investment activity. The coalition argued that staking does not meet the Howey test definition of an “investment contract” since stakers retain ownership of their assets and rewards are determined by blockchain protocols, not by managerial decisions. They urged the SEC to support responsible inclusion of staking in exchange-traded products (ETPs) and to avoid overly prescriptive rules that could hinder innovation. The letter called for principles-based guidance similar to recent SEC statements on proof-of-work mining. The POSA includes notable organizations like Andreessen Horowitz, Consensys, and Kraken. The SEC has not yet approved a crypto staking ETF and delayed decisions on Grayscale’s spot Ether ETF.
