Nearly 30 crypto advocate groups, led by the Crypto Council for Innovation (CCI), have urged the Securities and Exchange Commission (SEC) in the US for clear regulatory guidance on crypto staking and staking services. The CCI’s Proof of Stake Alliance (POSA) group argued in a letter to SEC Commissioner Hester Peirce that staking is a technical process, not an investment activity. The letter responded to the SEC’s call for public input on regulating staking and liquid staking under federal securities laws. The coalition called for responsible inclusion of staking features in exchange-traded products (ETPs) and emphasized the importance of avoiding overly prescriptive rules that could hinder innovation. The group highlighted that staking does not meet the Howey test definition of an “investment contract” as stakers retain ownership of their assets. They also stressed that blockchain protocols, not staking providers, determine rewards. The letter requested principles-based guidance similar to recent SEC staff statements on proof-of-work mining. The Proof of Stake Alliance includes high-profile crypto organizations like Andreessen Horowitz, Consensys, and Kraken. The SEC has yet to approve a crypto staking exchange-traded fund (ETF) and delayed the decision on allowing staking for Grayscale’s spot Ether ETF. Analysts predict that an Ether ETF with staking could come as soon as May. This move towards regulatory clarity is seen as a positive step for the industry as it fosters collaboration and innovation in the staking space.