A coalition of major crypto firms is urging the U.S. Securities and Exchange Commission (SEC) to clarify that crypto staking does not fall under securities regulations. In an open letter, the Crypto Council for Innovation and the Proof of Stake Alliance emphasize that staking serves as a technical mechanism for securing blockchain networks rather than an investment scheme. Staking involves users locking up tokens to validate transactions in proof-of-stake blockchains, earning rewards in return. The coalition, backed by firms like Consensys and Kraken, seeks principles-based guidance akin to the SEC's recent statement on proof-of-work mining, aiming to protect users while fostering the growth of the staking industry. The letter also suggests establishing standards for transparency and user control in staking services. This appeal comes as the SEC aims to provide regulatory clarity in the crypto sector, particularly after leadership changes that have shifted the agency's stance toward more supportive regulations for innovation.

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