The Crypto Council for Innovation argues to the U.S. Securities and Exchange Commission that staking should not only be a virtue in the digital asset market, but it should be practical for securities regulators.
The group – an interest coalition such as Kraken, A16Z, Lido, Galaxy, Galaxy, Figment, Polychain, Paradigm, etc. – argued in a letter to logic to logic behind the recent statements of SEC staff that the logic behind the recent statements of the “workplace” that mining of “proof” is not a secret deal that should not make an extension of the judgement underlying the agency’s judgement. bucket.
According to a letter reviewed by Coindesk, “stakers like Pow Miners are compensated based on the outcome of protocol definitions, not management measures or profit sharing arrangements.”
When a user bets a coin, they agree to be locked up for a period of time to participate in blockchain operations and security, and earn a return for that. The group argues that cryptocurrency bets on “proof” blockchain protocols provide “valuable technical services” and the resulting reward is not the return of passive investments.
Read more: Crypto Staking101: What is staking?
The CCI view goes against the SEC’s previous stance when former chairman Gary Gensler’s executive staff targeted Crypto staking operations, including other cases including Consensys, including a well-known settlement with Kraken’s agency. The SEC also blocked staking on Exchange-Traded Funds (ETFS) tracking Ethereum (ETH) when reviewing applications for these products in 2024.
The CCI letter asked the SEC to provide guidance as was done for Memecoin publishers, miners and several Stablecoin publishers, declaring their activities outside the agency’s legal concerns. These statements are neither formal guidance nor binding, but are used as markers that set the boundaries of regulators’ current thinking.
“In the country, securities regulators in some states are pursuing enforcement measures related to dyeing,” the coalition said. “Guide from the committee will help send a clear signal that the United States supports innovation and adopts common sense regulations that are faithful to the restrictions of securities laws, at least at the federal level.”
Since the start of President Donald Trump’s administration, the SEC has generally been far more friendly about digital assets. New Chair Paul Atkins signaled his openness to rethinking how agents have treated crypto businesses at his first public event, the Crypto Round Table, on Friday.
Crypto companies aren’t just looking for new directions on staking. In February, the US senator wrote to regulators, calling for them to reconsider their opposition to staking in spot ETFs in the industry.