US Firms Seek Clarity on Crypto Staking Rules from SEC

Coalition of 30 Calls for Staking Clarity from SEC

A coalition of almost 30 organizations, including a16z crypto and Lido, addressed the SEC, seeking clarification on the regulatory status of crypto staking. They argue staking is a technical process, not a security. Hester Peirce, head of the SEC’s Crypto Task Force, received this letter, which contends that staking does not fit traditional securities regulations and emphasizes its foundational role in the decentralized internet.

“Staking is fundamentally a technical process rather than an investment activity and should not be regulated as a security.” – Hester Peirce, Commissioner, SEC

SEC Policies on Staking and Ethereum ETFs Under Spotlight

The coalition’s letter could influence SEC policies, potentially affecting Ethereum ETFs and staking services in the US. Companies like Kraken have resumed staking services under new SEC leadership, reflecting a possibly friendlier regulatory stance. The industry anticipates clearer principles similar to those for proof-of-work mining, expecting regulatory adaptation to support blockchain technologies without stifling innovation.

Past SEC Actions Shape Current Regulatory Debate

Under previous SEC Chair Gary Gensler, stringent enforcement treated staking as securities, impacting major platforms. Kraken’s $30 million settlement illustrates the past regulatory environment. The push aligns with the Crypto Council’s broader effort to establish a more collaborative approach with the SEC, aiming for guidance that fosters innovation while protecting consumers in the fast-evolving digital asset space.