More than 30 leading companies in the crypto industry have called on the U.S. Securities and Exchange Commission (SEC) to define crypto staking transactions as a technical process rather than a securities transaction.
Led by the Crypto Council for Innovation (CCI), a group that includes giants such as a16z, Paradigm, and Kraken, argues that staking transactions play a critical role in the security and decentralization of blockchain networks. In a joint letter sent to the SEC, the companies stated that defining staking as a security could create an excessive regulatory burden that hinders innovation in the sector.
The letter also emphasized that staking transactions are a simple technical process where users lock their tokens to contribute to network security. It was stated that evaluating these transactions as investment contracts is inappropriate, as this approach would negatively affect both crypto entrepreneurs and users in the U.S.
Crypto companies warned that the uncertainty surrounding staking regulations could seriously hinder growth and technological advancement in the sector. The letter indicated that clear and transparent regulations requested from the SEC would position the U.S. as a leader in global crypto innovation.