Crypto Industry Pushes SEC for Clarity on Staking Rules

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8 hours ago

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, a change in leadership with the recent appointment of regulator Paul Atkins to its head and a pro-crypto government administration under Trump has led to a shift in tone. Atkins has distanced himself from the previous SEC regime, which he accused of stifling innovation. 


The SEC has dropped or declined to pursue multiple high-profile cases against crypto companies and has launched a series of roundtables to collect feedback from industry stakeholders.


The Crypto Council’s letter also outlines a framework for staking service providers that includes clear user disclosures, transparency on how rewards are distributed, and assurance that users maintain control over their staked assets.


Edited by Sebastian Sinclair


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