Crypto Council for Innovation calls on SEC to clarify staking rules
A coalition of 30 crypto advocacy groups, led by the Crypto Council for Innovation, has urged the Securities and Exchange Commission to clarify regulations on staking and staking services.
In response to the SEC’s recent call for public input on whether staking and liquid staking should fall under federal securities laws, the coalition submitted a joint letter outlining why they believe staking should not be treated as a securities activity.
The letter, addressed to SEC Commissioner Hester Peirce, comes amid growing calls from the crypto industry for regulatory clarity around core blockchain infrastructure.
The group, coordinated through the Council’s Proof of Stake Alliance, which counts Coinbase, the Ethereum Foundation, ConsenSys, and the Blockchain Association among its members, argued that staking is a “technical process” that helps secure proof-of-stake networks, not an investment arrangement.
Backing their position, the coalition said staking fails to meet the legal definition of an “investment contract” under the Howey test, the key framework the SEC uses to determine whether something qualifies as a security.
They argued that stakers do not invest money with an expectation of profit derived from the efforts of others. Instead, users retain full ownership of their tokens, which they can withdraw at any time, and any rewards are determined automatically by the blockchain protocol.
Furthermore, the letter emphasized that staking providers are not responsible for generating profits, unlike traditional businesses that rely on managerial decisions to generate returns. Instead, staking services act as intermediaries, connecting users to blockchain networks where rewards are determined automatically by the protocol.
The coalition called on the SEC to issue principles-based guidance for staking and staking services, similar to the agency’s past statements on proof-of-work mining.
Rather than implementing traditional securities laws, the group urged the regulator to recognise staking as a technical function and adopt a framework that supports its responsible use, including in products like exchange-traded funds.
They also proposed a set of practical standards for staking providers, such as transparent disclosures around fees and slashing risks, public audits of smart contract code, clear user consent procedures, and the use of accurate, non-promotional language.
“By providing clear, principles-based guidance, the SEC would ensure that the U.S. remains competitive in the rapidly growing digital asset market,” the group said, adding that other jurisdictions like the U.K. , Canada, and Hong Kong have already taken steps to clarify their approach to staking.
They warned that without similar clarity in the U.S., innovation could shift overseas, leaving American companies and users at a disadvantage.
The letter comes as several ETF issuers, including Fidelity , Franklin Templeton, VanEck, and Grayscale, have filed to include staking in their proposed spot crypto ETFs. However, the SEC has yet to approve any such proposals and has recently delayed decisions on several of these filings.
Nevertheless, analysts remain hopeful that approvals are on the horizon. Bloomberg’s Eric Balchunas and James Seyffart have projected 75% to 90% chances of approval for many pending crypto ETFs by the end of 2025.
NEAR Protocol Adds EdDSA Signing to Boost Cross-Chain Access
NEAR Protocol has upgraded its Chain Signatures framework by adding support for EdDSA (Edwards-curve Digital Signature Algorithm), that brings transaction control across multiple blockchains from a single NEAR account.
The update, announced on April 30, enables users and smart contracts to manage assets and interact with networks like Solana, Toncoin, Sui, Aptos, and Stellar without leaving the NEAR ecosystem or managing separate private key systems.
At the core of this release is support for EdDSA signatures based on the Ed25519 cryptographic curve. Known for its speed and resistance to side-channel attacks, EdDSA is used widely across modern blockchain networks and enables efficient signature verification, including support for batch processing.
Through this upgrade, NEAR’s smart contracts and accounts can now generate EdDSA-compliant signatures that are recognized by external chains, all while keeping private keys securely confined within NEAR’s trustless runtime environment.
The new EdDSA implementation marks a major step toward blockchain interoperability. With this release, NEAR accounts can directly initiate transactions on EdDSA-supported chains like Solana (SOL), Toncoin (TON), Aptos (APT), Sui (SUI), and Stellar (XLM).
Related: NEAR Snap Brings Non-EVM Features to MetaMask for the First Time
Users no longer need to rely on custodial bridges, manage multiple wallets, or juggle distinct cryptographic schemes to access assets across different blockchains. Instead, they can now use their single NEAR account to sign and execute transactions natively on external networks.
Beyond user benefits, the update also enhances the developer stack. With EdDSA now integrated, frontend and backend developers can build multi-chain applications without the need for custom cryptographic code per chain.
Developers working on DeFi, gaming, or token management dApps can leverage NEAR’s new cryptographic layer to launch interoperable applications that interact with assets across networks — without needing unique integrations for every chain.
The integration opens new use cases for developers across multiple networks. For instance, Solana-based DeFi platforms can enable cross-chain lending products that interact with NEAR accounts, allowing users to stake SOL while borrowing NEAR. Similarly, developers could build decentralized exchanges on NEAR that aggregate liquidity from chains like SUI, Aptos, and Solana, potentially increasing access to multi-chain swap functionalities.
Omnibridge implementations can also be expanded to include EdDSA-based chains without requiring unique modifications for each supported protocol. Additionally, the new architecture permits smart contracts to create transaction flows across different blockchain environments using a common interface.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Bitget Onchain Trading (Onchain) launches BEDCOIN, DONKEY, DREAM and other tokens
Bitget Onchain has launched BEDCOIN, DONKEY, DREAM, Shortcoin, MvG, and gork, the MEME tokens of Solana and BNB Smart Chain. Users can start trading in the on-chain trading section. Bitget Onchain aims to seamlessly connect CEX and DEX, providing users with a more convenient, efficient, and secure on-chain trading experience. Users can directly use Bitget spot accounts (USDT/USDC) to trade popular assets on the chain. Currently, popular public chains such as Solana (SOL), BNB Smart Chain (BSC), and Base are supported.
🚀 $BTC/USDT – Bullish Momentum Reloaded! Heading for $96K? 📈🔥
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