US Crypto Advocates Ask SEC to Provide Clarity on Staking
Nearly 30 cryptocurrency advocacy groups, led by the Crypto Council for Innovation (CCI), have urged the US Securities and Exchange Commission (SEC) to provide clear regulatory guidance on crypto staking.
In an April 30 letter addressed to SEC Commissioner Hester Peirce, the coalition argued that staking—a process where users lock up tokens to support blockchain operations—is a technical function, not an investment activity subject to securities laws.
The letter, sent by CCI’s Proof of Stake Alliance (POSA), emphasized that staking is “the backbone of the decentralized internet” and does not meet the Howey Test’s criteria for an “investment contract” since users retain ownership of their assets.
The groups also called for the SEC to allow staking features in exchange-traded products (ETPs) while avoiding overly restrictive regulations that could hinder innovation.
