The Proof of Stake Alliance and a broad coalition of nearly 30 digital asset industry leaders, have submitted a letter urging the SEC’s Crypto Task Force for clear, principles-based guidance for staking and staking services – akin to their recently issued statement on proof-of-work mining.
The most influential staking organizations and proof of stake protocols have signed on to this effort, reflecting a diverse and united voice across the staking industry. It is being described as “a formidable and representative drive for progress.”
After years of asking for clear rules for stakers and the staking industry, and developing its own industry principles in that void, digital assets firms are finally seeing progress with the US regulator. For example, the SEC and several US states recently abandoned their lawsuits against Coinbase’s staking services.
On March 20, the SEC’s Division of Corporation Finance issued a statement on proof-of-work (PoW) mining which provides that certain PoW mining activities are not subject to securities regulations. The proof-of-stake letter asks for similar treatment for staking and staking services.
Principles-based guidance on staking
It is the first time the industry has come together on this scale to make a formal recommendation on how staking should be regulated. The digitial assets industry says it wants clear, principles-based guidance for staking and staking services akin to Proof of Work mining, to protect users and enable growth.
Staking is a technical function necessary to secure and maintain proof-of-stake (PoS) blockchain networks by validating transactions. Any participant on a network can perform this function, and in return they are rewarded with new tokens often referred to as staking rewards.
- Abu Dhabi welcomes first multi-strategy digital assets fund
- ETF Radar: Goldman Sachs, Central Bank of Ireland and REX Shares
- SEC charges PGI Global over $198m forex and crypto scam
Industry players in the staking space believe service providers should clearly market the services they are providing. In addition, users should be always in charge of their staked assets, how much to stake, and never relinquish ownership of their tokens.
“Service providers should be transparent about what they can and cannot control. They are providing a technology service, not a financial service,” said the POSA last week.
With the SEC identifying staking as a priority in recent RFIs and international jurisdictions advancing their own frameworks, the letter underscores the urgency of regulatory agency guidance to ensure consistency, fairness, and global competitiveness.
Alison Mangiero, Head of Staking Policy, CCI, said:
“In the past four months we’ve seen more movement and constructive dialogue with the SEC than the past four years. This is the industry stepping up with one voice to help regulators get it right. We all want to protect consumers, preserve innovation, and make sure America leads. We believe in systems where users secure the network and share in the value they help create. That’s staking. The nearly 30 organizations who signed onto this letter are working with us to make sure regulators and policymakers see it for what it really is – a technical process.”
While staking is an essential good for PoS networks, it requires technical knowledge and time. Many companies have commercialized staking services to help facilitate participation in this process for tokenholders.
Specifically, the industry is calling on the SEC to provide clear guidance on staking and staking services consistent with recent statements on memecoins, PoW mining, and stablecoins. It also wants the regulator to support the responsible inclusion of staking features in exchange-traded products (ETPs). Finally it is asking the SEC to avoid overly prescriptive rules that could freeze current market structures and stifle innovation in the staking space
Ji Kim, President and Acting CEO of the Crypt Council for Innovation, said:
“The staking industry has come together in an unprecedented way, demonstrating unity and leadership at a critical time for crypto in the U.S. This coalition represents a collective effort to provide the SEC with clear, principles-based guidance that enables innovation while ensuring regulatory clarity. We are committed to working alongside regulators to shape the future of staking in America, ensuring it continues to support blockchain security, decentralization, and growth.”
