The cryptocurrency industry is increasingly vocal in its calls for the U.S. Securities and Exchange Commission (SEC) to provide formal guidance on staking. This request follows concerns about regulatory uncertainty that Web3 infrastructure providers face. During Solana’s Accelerate conference in New York, Allison Muehr, the head of staking policy at the Crypto Council for Innovation, emphasized that clarifying the SEC’s position on staking is now a top priority for the crypto sector. Muehr noted, “We’re about 25% of the way there,” pointing out that the SEC has engaged more constructively with industry representatives in recent months than in the previous four years. However, the lack of formal staking guidance remains a significant hurdle.
Shifting Regulatory Landscape
The SEC’s stance on cryptocurrency has evolved significantly under the current presidential administration. Following previous enforcement actions against several crypto firms for alleged unregistered securities offerings linked to staking services, the agency has recently shown signs of leniency. In February, the SEC clarified that memecoins do not qualify as investment contracts under U.S. law. Furthermore, in April, the regulator stated that stablecoins marketed solely as payment methods do not qualify as securities. Despite this progress, the SEC has yet to approve staking in exchange-traded funds (ETFs) or issue comprehensive guidance on compliant staking services in the U.S.
Muehr expressed optimism that the SEC will eventually sanction staking for cryptocurrency ETFs, including those related to Solana, but acknowledged the necessity of familiarizing the SEC with industry structures first. “I’m hopeful we’ll see a Solana ETF and even a staked Solana ETF in the U.S. sometime soon,” she stated.
Yet, the SEC is not the only regulatory body under the industry’s scrutiny. The Internal Revenue Service (IRS) has recently claimed that staking rewards should be classified as service income—an interpretation that Muehr and others in the crypto sector vehemently oppose. “We disagree with that interpretation and continue to engage,” she emphasized.
As the cryptocurrency industry continues to navigate a complex regulatory landscape, the call for clarity from the SEC on staking remains crucial. Achieving formal guidance could open new avenues for innovation and compliance in a rapidly evolving market.
