A coalition of nearly 30 crypto advocacy groups is pushing back against potential securities regulations on staking, arguing that the process is more about blockchain infrastructure than traditional investing.
Led by the Crypto Council for Innovation (CCI), the group sent a letter on April 30 to SEC Commissioner Hester Peirce, stressing that staking—where users lock up tokens to earn rewards—should not be classified as a security.
“Staking isn’t niche—it’s the backbone of the decentralized internet,” the letter stated, countering the SEC’s consideration of regulating staking under federal securities laws.
The coalition, which includes CCI’s Proof of Stake Alliance (POSA), contends that staking fails the Howey Test because users maintain control of their assets, unlike traditional investment contracts.
The groups also urged the SEC to support staking in exchange-traded products (ETPs) without imposing rigid rules that could stifle innovation.
