US Crypto Industry Groups Request Clarity from SEC on Staking

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A broad coalition of crypto industry groups, spearheaded by the Crypto Council for Innovation (CCI), has formally requested regulatory clarity from the SEC on staking services.

In an April 30 letter to SEC Commissioner Hester Peirce, the group—which includes CCI’s Proof of Stake Alliance (POSA)—asserted that staking is a technical validation mechanism, not an investment activity that should be regulated under securities laws.

The letter challenges the SEC’s potential application of the Howey Test, arguing that stakers retain ownership of their assets and thus do not meet the definition of an “investment contract.”

It also calls for a balanced regulatory approach that permits staking features in exchange-traded products (ETPs) while avoiding overly prescriptive rules that could hinder market development.

This push for clarity comes as the SEC solicits public feedback on whether staking and liquid staking should be subject to securities regulations—a decision that could significantly impact the future of decentralized finance (DeFi) and blockchain infrastructure.