Crypto Council Urges SEC Deregulation to Safeguard Staking Innovation

Over 30 crypto organizations, led by the Crypto Council for Innovation, have collectively called on the SEC to ease regulatory pressures on staking. In an April 30, 2025 letter, they argued that staking – a process critical for securing networks and supporting decentralized applications on proof-of-stake (PoS) blockchains – should be recognized as a technical function rather than an investment activity. The group stresses that over-prescriptive rules could inhibit market innovation and diminish the competitiveness of U.S. digital assets. They are advocating for clear, balanced guidelines that align with the industry’s practices and parallels the SEC’s recent stance on proof-of-work mining. The move is aimed at fostering a more supportive regulatory environment that underpins both network security and the overall growth of the decentralized internet.