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.
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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
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