Crypto firms urge SEC for guidance on staking rules

A group of major crypto companies has urged the U.S. Securities and Exchange Commission to clarify whether staking qualifies as an investment activity.

In an open letter sent to the SEC’s Crypto Task Force, the Crypto Council for Innovation and the Proof of Stake Alliance argued that staking should not fall under the agency’s securities framework.

They stated that staking is a technical process used to secure proof-of-stake blockchains and not a financial product.

The council’s letter emphasised that clear regulatory guidance is needed to ensure the growth and integrity of the staking sector in the U.S.

Backed by firms such as Consensys, Kraken, Ava Labs, and Galaxy, the coalition called for principles-based guidance similar to previous SEC positions on mining, stablecoins, and memecoins.

“The ask is straightforward: principles-based guidance for staking and staking services, similar to the SEC’s recent statement on proof-of-work mining,” the group said.

It also proposed a framework for staking service providers, recommending transparency on reward distribution, user disclosures, and assurance that stakers retain control over their tokens.

The letter comes during a shift in the SEC’s approach to crypto under new leadership.

Chair Paul Atkins, appointed under the current administration, has moved away from the enforcement-heavy stance taken by his predecessor.

Atkins has withdrawn several enforcement cases against crypto firms and launched roundtables to gather input from the industry.

Under his leadership, the SEC has signaled a more open stance toward blockchain-related services and technologies.

The Crypto Council said the U.S. must align regulation with innovation and maintain competitiveness in blockchain development.

It warned that without regulatory clarity, domestic firms could fall behind global counterparts in the fast-developing staking ecosystem.