The crypto sector is increasing its pressure on the US. The SEC should clarify its regulatory guidance regarding staking services. Industry leaders believe the lack of official legislation is giving rise to confusion while stifling innovations in Web3 infrastructure.
The head of staking policy at the Crypto Council for Innovation, Allison Muehr, called for change during the recent Solana Accelerate conference in New York. “We’ve made some arrangements, about twenty-five percent,” she said. “The SEC has been more involved in the last few months than they have the last four years,” but we’re still waiting on staking rules.
Crypto players like Kraken, Consensys, Ava Labs, and Galaxy consider staking a technical function that makes blockchains secure — and not an investment offering. Staking crypto tokens is necessary to run a network. When users stake their coins, they earn staking rewards. The staking process is essential for the operations of a proof-of-stake (PoS) system.
In recent months, the SEC has clarified that stablecoins and memecoins will not be considered securities. However, their recent announcement isn’t an official ruling on staking services or crypto-based ETFs. Muehr continues to be optimistic that things are moving in the right direction including Solana or staked Solana ETFs.
The push for regulatory clarity isn’t limited to the SEC. The crypto industry subsequently criticized the IRS for labeling staking rewards as service income. Muehr said they’re working with the IRS on this issue, which is part of a larger effort.
A framework that includes user control over staked assets, transparency in reward distribution, and clear disclosures is a must, say industry advocates. They want to protect consumers while letting staking — an important aspect of blockchain ecosystems — stay legal and safe.
Part of a larger movement to modernize crypto oversight, the industry hopes the regulator follows the footprint of recent regulatory tweaks, such as the GENIUS Act for stablecoins, and offers principles-based guidance for staking. The aim is to create a clear and supportive regulatory environment that would drive blockchain innovation and growth in the United States.
