Crypto Advocacy Groups Call for Clear SEC Guidelines on Staking(OKX)
A coalition of nearly 30 cryptocurrency advocacy organizations, led by the Crypto Council for Innovation (CCI), has formally requested the U.S. Securities and Exchange Commission (SEC) to provide clear regulatory guidance on crypto staking and staking services. In a letter addressed to SEC Commissioner Hester Peirce, the group emphasized that staking is fundamentally a technical process, not an investment activity, and should not be classified under federal securities laws. (Cointelegraph)
The coalition argues that staking involves participants locking up their tokens to support the operations of a blockchain network, receiving rewards generated by the protocol itself. They contend that this process does not meet the criteria of the Howey Test, which determines what constitutes a security, as there is no investment of money with an expectation of profits derived from the efforts of others. (Cryptonews, crypto.news)
This call for clarity comes amid ongoing discussions about the regulatory status of staking services. In recent interactions, blockchain network Chainlink engaged with the SEC, leading to the issuance of new guidance clarifying how securities rules apply to the crypto market. While the guidance is not legally binding, it provides insights into the SEC's perspective on crypto-related activities. (OKX, Cryptopolitan)
The crypto industry emphasizes that without clear regulations, innovation could be stifled, and the U.S. could fall behind in the rapidly evolving digital asset space. By distinguishing staking as a technical function rather than a financial transaction, the coalition hopes to foster an environment that supports technological advancement while ensuring consumer protection.(Cryptonews, crypto.news)
References:
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Cointelegraph: US crypto groups urge SEC for clarity on staking
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Crypto News: Crypto Council for Innovation calls on SEC to clarify staking rules
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Cryptopolitan: Chainlink’s meeting with SEC leads to explanatory guidance for crypto industry
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Bit Bulletin: Blockchain Firms Push SEC for Staking Clarity
