The Crypto Council for Innovation protects the American Securities and Exchange commission that stimulation is not only a virtue for digital asset markets, but it should be practical for the securities regulator.
The group – a coalition of ignition interests, notably Kraken, A16z, Lido, Galaxy, Lignement, Polychain and Paradigme – has argued in a letter to the Agency’s crypto working group that the logic behind the recent Declaration of the SEC personnel according to which “the labor procedure” Crypto Mining is not a transaction of titles under the jurisdiction of the agency.
“Stakers, like POW minors, are remunerated according to the results defined by the protocol, and not management actions or participation agreements for profit”, according to the letter examined by Coindesk.
When users mark out their pieces, they agree to have them locked up for a certain period to participate in the operation and the security of a blockchain, and they earn a return for this. Those who mark their cryptographic assets on blockchain protocols “proof of putting” provide “precious technical services”, and the resulting awards are not passive investment gains, according to the group.
Read more: Crypto Staking 101: What is the markup?
The view of the CCI goes against the previous position of the SEC, when the application staff of former president Gary Gensler has targeted the operations of participation in cryptography, as in the highly publicized Kraken regulations with the agency as well as other cases, including one involving consensys. The SEC also blocked the milestone in the funds negotiated on the stock market (ETF) following Ethereum (ETH) when it examined the applications of these products in 2024.
The CCI’s letter asked the SEC to provide advice as is for the same issuers, minors and some stablecoin issuers, declaring that their activities are not the legal concern of the agency. Although these declarations are not binding – not even as a formal guidance – they are supposed to be markers to fix the limits of the regulator’s current thought.
“At the national level, the regulators of securities of certain states pursue measures to apply actions relating to jalitude,” according to the coalition. “Commission’s guidelines can help send a clear signal that, at least at the federal level, the United States adopts common sense regulations favorable to innovation and faithful to the limits of securities.”
Since the start of President Donald Trump’s administration, the SEC has generally taken a much more friendly posture towards digital assets. The new president Paul Atkins reported during his first public event on Friday – a cryptographic round table – that he is ready to rethink the way the agency has treated cryptography companies.
Crypto societies are not alone in looking for a new direction on the stake. In February, the American senators sent a letter to the regulator calling on him to reconsider his opposition to the implementation of the FNB SPOT in the industry.
