Nearly 30 U.S. Crypto advocacy groups, led by the Crypto Council for Innovation’s Proof of Stake Alliance (POSA) group, argued on April 30 that, have asked the Securities and Exchange Commission (SEC) for clear regulatory guidelines on crypto staking. They assert that staking—a process where users lock up their digital assets to support blockchain operations and earn rewards—is inherently a technical function, not an investment activity. This distinction is crucial, as it challenges the SEC’s previous actions, such as the $30 million settlement with Kraken over unregistered staking services, which led to the cessation of its U.S. staking operations.
1/ Today, CCI is proud to stand alongside nearly 30 key players in the industry to secure US leadership in staking. This kind of alignment matters. Here’s why: pic.twitter.com/1JZRtstpWD
— Crypto Council for Innovation (@crypto_council) April 30, 2025
The group emphasizes that the Howey Test’s definition of an investment contract does not include staking. They argue that since stakers maintain ownership of their assets and rewards are determined by blockchain protocols rather than managerial efforts, staking should not fall under securities regulations. The groups are advocating for principles-based guidance akin to recent SEC statements on proof-of-work mining, aiming to foster innovation without imposing restrictive rules that could hinder the growth of staking services.
This push for clarity comes amid broader industry concerns over the SEC’s regulatory approach. Notably, Coinbase has also been entangled in legal disputes with the SEC regarding its staking programs, highlighting the need for clear and consistent regulations. The advocacy groups’ letter reflects a growing consensus within the crypto community that transparent and well-defined regulatory frameworks are essential for the sustainable development of blockchain technologies in the United States.
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