Crypto Council for Innovation calls on SEC to clarify staking rules

A coalition of 30 cryptography defense groups, led by the Crypto Council for Innovation, urged the Securities and Exchange Commission to clarify the regulations on the fitting and jealous services.

In response to the recent call of the DRI to the public’s contribution on the question of whether the mlable and the liquid milestone should be on the part of the federal laws on securities, the coalition has submitted a joint letter Discover why they believe that the markup should not be treated as a titles activity.

The letter, addressed to the SEC Commissioner, Hester Peirce, is involved in the middle of the growing calls of the cryptographic industry for more regulatory clarity around the basic blockchain infrastructure.

The group, coordinated through the proof of evidence of Stake Alliance, which has Coinbase, the Ethereum Foundation, Consensys and the Blockchain Association between its members, argued that the implementation is a “technical process” which helps to secure the proof networks, not an investment agreement.

Sailing for their position, the coalition has declared that the marker does not respond to the legal definition of an “investment contract” as part of the Howey test, the key frame that the SEC uses to determine if something is considered to be security.

They argued that the stakers do not invest money pending profit from the efforts of others. Instead, users keep full ownership of their tokens, which they can withdraw at any time, and all the rewards are automatically determined by the blockchain protocol.

In addition, the letter has stressed that suppliers of development are not responsible for generating profits, unlike traditional companies that depend on management decisions to generate yields. Instead, staging services act as intermediaries, connecting users to blockchain networks where rewards are automatically determined by the protocol.

The Coalition has called for the dry to issue advice based on principles for the yielding and jealous services, similar to the agency’s previous declarations on the exploitation of the work proof.

Rather than implementing traditional securities laws, the group has urged the regulator to recognize implementation as a technical function and to adopt a framework that supports its responsible use, including in products such as negotiated funds on the stock market.

They also proposed a set of practical standards for ignition providers, such as transparent disclosure around the costs and risks of risk reduction, public audits of the intelligent contract code, consent procedures for clear users and the use of a specific and non -promotional language.

“By providing clear advice and based on principles, the SEC would guarantee that the United States remain competitive on the rapidly growing digital asset market,” said the group, adding that other jurisdictions like the United KingdomCanada, and Hong Kong have already taken measures to clarify their approach to stain.

They warned that without similarity in the United States, innovation could move abroad, leaving American companies and users in disadvantage.

The letter intervenes as several ETF issuers, including LoyaltyFranklin Templeton, Vaneck and Grayscale, filed a file including a milestone in their proposed crypto ETF. However, the dry has not yet approved such proposals and has recently delayed decisions on several of these deposits.

Nevertheless, Analysts remain full of hope These approvals are on the horizon. Eric Balchunas de Bloomberg and James Seyffart projected 75% to 90% of approval for many Crypto ETF waiting by the end of 2025.