A coalition of leading crypto companies, led by the Crypto Council for Innovation and the member organization Proof of Stake Alliance (POSA), has officially sent an open letter to the U.S. Securities and Exchange Commission (SEC), requesting the SEC to clarify that staking activities are not a form of investment securities.
Why is staking seen as a 'gray area'?
Staking is a core activity in blockchains that use the Proof of Stake mechanism (#PoS ) – users lock tokens to validate transactions and secure the network, in return, they receive staking rewards.
However, in the U.S., the SEC has indicated that it considers staking to be an investment activity that requires registration, causing many companies to worry about being prosecuted if they provide staking services to users.
In a letter to the SEC Crypto Task Force, companies including Consensys, Kraken, Ava Labs, Galaxy… emphasized that staking is a technical activity, not speculative, similar to mining on Proof of Work networks – which the SEC has already confirmed is not under securities regulation.
What does the crypto community want?
The crypto alliance proposes #SEC should:
Issuing clear guidelines based on principles – rather than regulating on a case-by-case basis, as was done with stablecoins or memecoins.
Create a standard framework for staking services, including:
Clearly disclose how rewards are distributed,
Users always retain control of their staked assets,
Transparent and easily understandable information for users.
They argue that this not only protects users but also helps the #staking industry develop in the right direction, as this is the operational foundation of many major blockchains today.
Changing context – A light at the end of the tunnel?
Under former Chairman Gary Gensler, the SEC was criticized for being 'regulatory by enforcement', stifling the legal activities of many crypto companies.
However, the leadership change to Paul Atkins, along with the new administration at the White House supporting technology innovation, is creating a shift in perspective.
The SEC has now declined to pursue many previous lawsuits and initiated open dialogues with industry stakeholders, showing they are willing to listen and adjust the rules.
Conclusion:
Staking is not just a 'way to earn rewards', but also the backbone of an entire decentralized blockchain ecosystem.
If the SEC accepts this new approach, clear and reasonable regulations could pave the way for millions of American users to participate in staking safely, while also helping the crypto market transition into a more stable and transparent phase in the long term.
Risk warning: The digital asset market is always subject to high volatility and risks. This is not investment advice. Users need to research and consider carefully before making financial decisions.