The organization is a collection of more than thirty crypto firms that lobby public institutions for better regulation of the industry.
Crypto Council Letter Urges SEC to Provide Clarity on Staking
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Industry Leaders Call on SEC to Define Rules for Crypto Staking
The Crypto Council for Innovation (CCI), an advocacy group for more favorable crypto regulation, submitted a letter to the U.S. Securities and Exchange Commission (SEC) on Wednesday, calling on the regulator to provide clear guidance on staking and related services.
The organization boasts more than thirty members under its umbrella, including prominent firms such as cryptocurrency exchanges Coinbase and Kraken, stablecoin issuer Circle, and giant asset manager Fidelity Investments.
In the letter, the CCI argues that staking, much like proof-of-work mining, is not an investment activity but rather a technical process for securing a blockchain. Users validate transactions and secure the network in exchange for rewards that are issued based on the amount of cryptocurrency participants’ “ stake” on the network.
The letter claims that other jurisdictions, such as Canada and the United Kingdom, have already provided clarity on the issue. The SEC itself issued a statement on mining in March. And now, the CCI is seeking a similar statement addressing the treatment of staking activities.
“ Staking is not an investment activity,” the letter says. “Stretching the outer bounds of the securities laws to cover such services would be inappropriate.”
