The Crypto Council for Innovation, representing various crypto entities, is requesting the U.S. Securities and Exchange Commission (SEC) to regulate crypto staking less strictly. They argue that staking should not be classified under securities regulation, akin to the SEC's stance on proof-of-work mining. Stakers, they claim, are compensated based on blockchain-defined outcomes rather than managerial actions or profit-sharing, which distinguishes them from securities activities. The coalition, which includes stakeholders like Kraken and a16z, cites the importance of staking for blockchain security and operations, asserting that rewards from staking are not just passive investments. They advocate for SEC guidance to provide clarity and to align regulations with innovative practices in the digital asset space. The letter also notes that some states are pursuing enforcement regarding staking, thus federal guidance could alleviate concerns and support a more innovation-friendly regulatory environment.

Source 🔗