Key Points:
- A coalition of cryptocurrency organizations, spearheaded by the Crypto Council for Innovation, has sent a letter to the Securities and Exchange Commission advocating for the deregulation of crypto staking.
- The letter seeks a formal acknowledgment from the SEC that staking should not be classified under securities activities, referencing the agency’s stance on crypto mining.
The Crypto Council for Innovation emphasizes that staking contributes positively to digital asset markets and argues for a non-regulatory approach from the SEC.
The coalition includes notable companies like Kraken, a16z, Lido, Galaxy, Figment, Polychain, and Paradigm. They contend that the SEC’s previous comments on proof-of-work mining should apply equally to staking.
“Stakers, like PoW miners, are compensated based on protocol-defined outcomes, not managerial actions or profit-sharing arrangements…”
When users stake their assets, they commit them for a set time, aiding the operation and security of a blockchain in return for benefits, which the group argues should not be viewed as passive investment gains.
The coalition’s perspective differs from the SEC’s earlier policies, particularly during the leadership of former Chairman Gary Gensler, who had taken a stringent approach towards crypto staking. Recent positions have indicated a potential shift towards more favorable regulations for the crypto market under current Chairman Paul Atkins.
This change could align with efforts from U.S. senators also advocating for a re-examination of staking within the broader context of cryptocurrency exchange-traded funds (ETFs).
