Crypto Industry Pushes SEC for Clarity on Staking Rules

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 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 “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.The request comes amid broader efforts by the SEC’s Crypto Task Force to bring regulatory clarity to the digital assets sector. Under However, a change in leadership with the The SEC has 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