US Virtual Asset Industry Calls Staking Regulations Excessive, Urges SEC for Clear Guidelines

Minseung Kang

Summary

Virtual asset lobbying groups have called on the SEC for legal clarity on staking.
They urged that staking should be considered a technical procedure, not an investment activity, and called for regulatory relaxation.
The SEC is requested to establish principle-based guidelines for staking-related regulations.

Around 30 virtual asset-related organizations, including cryptocurrency lobbying groups in the United States, have called on the Securities and Exchange Commission (SEC) for legal clarity on staking.

According to the virtual asset specialized media Cointelegraph on the 1st (local time), the 'Proof of Stake Alliance (POSA)' under the Crypto Council for Innovation (CCI) sent a letter to SEC Commissioner Hester Peirce, arguing that "staking is merely a technical procedure, not an investment activity."

They emphasized that "staking is the core of a decentralized internet," and that "an overly regulatory approach could stiffen market structure and hinder innovation." They also stated that "blockchain rewards are determined by the protocol, not the staking provider, and profits do not arise through managerial decisions like a company," requesting that "the SEC should establish principle-based guidelines for staking, similar to its recent announcements on Proof of Work (PoW) mining."

Meanwhile, major companies such as a16z, ConsenSys, and Kraken are included in the Proof of Stake Alliance. Previously, Kraken resumed its staking services in the US earlier this year.

The media added, "The SEC has not yet approved an ETF with staking functions, and last month, it also postponed the review on whether to allow staking for Grayscale's Ethereum spot ETF."

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