US Cryptocurrency Organizations Urge SEC to Clarify Staking Regulations
According to a report by Jinse Finance, nearly 30 cryptocurrency advocacy groups, led by the lobbying group Cryptocurrency Innovation Council (CCI), have requested the U.S. Securities and Exchange Commission to provide clear regulatory guidance on cryptocurrency staking and staking services. In a letter dated April 30 to the head of the agency's crypto task force, SEC Commissioner Hester Peirce, CCI's Proof of Stake Alliance (POSA) group pointed out that proof of stake is fundamentally a technical process, not an investment activity. The alliance urged the SEC to support the responsible inclusion of staking features in exchange-traded products (ETPs) and to "avoid creating overly strict rules, as these could freeze market structures and stifle innovation in the staking field." The organization argues that since stakers retain ownership of their assets, staking does not meet the Howey Test's definition of an "investment contract" under the definition of securities.
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