A group of nearly 30 cryptocurrency advocacy organizations has formally requested that the US Securities and Exchange Commission (SEC) provide clear rules for crypto staking and related services.
The request was led by the Crypto Council for Innovation (CCI) and its Proof of Stake Alliance (POSA).
In a letter dated April 30, addressed to SEC Commissioner Hester Peirce, who leads the agency’s Crypto Task Force, the group explained that staking is a technical function, not an investment.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
10 Biggest Crypto Scams & How to Avoid Them (ANIMATED)
The letter stated, “Staking isn’t niche — it’s the backbone of the decentralized internet”.
The group also encouraged the SEC to allow staking features to be included in exchange-traded products (ETPs). They warned that strict or overly detailed rules could prevent new market developments and slow down progress in the staking sector.
The coalition argued that staking does not meet the Howey test, the standard used to decide if something is an “investment contract”. They explained that people who stake their tokens still own them. Also, any rewards come from the blockchain’s automated process, not from the actions or decisions of the staking provider.
The group asked the SEC to provide broad and flexible guidance, similar to what the agency has recently offered for proof-of-work mining. They also noted that the current rules requiring financial disclosures are not suited for staking services because staking is mainly a technical process.
On April 25, Coinbase
$596.57M
sent two letters to the Office of Government Ethics (OGE) Acting Director Jamieson Greer and new SEC Chair Paul Atkins. What did the letters say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
