Crypto Council for Innovation is making a case with the US Securities and Exchange Commission that efforts are not only a virtue of the markets for digital asset, but it must be hands-off for the securities regulator.
The group-a coalition of efforts, including Kraken, A16Z, Lido, Galaxy, Figment, Polychain and Paradigm-argued in a letter to the agency’s crypto-task force that the logic behind the SEC staff’s recent statement that “proof-of-work” crypto-creep is not a fuse transaction under Agency’s jurisdiction, It is extracted by the exposing pants.
“Stackers, such as Pow-Mine Workers, are compensated based on proto-venerable results, not managerial actions or profit sharing schemes,” according to the letter reviewed by Coindesk.
When users stab their coins, they agree to have them pasted for a specified period of time to participate in a blockchain operation and security and they earn a return for it. Those who put their crypto assets on “proof-of-stake” blockchain protocols provide “valuable technical services” and the resulting rewards are not passive investment gains, the group claims.
Read more: Crypto Pooring 101: What is stack?
The CCI point of view contradicts SEC’s previous attitude, as former President Gary Genslers enforcement staff targeted crypto-rating operations, such as in Kraken’s high-profile settlement with the agency as well as other cases, including one involving Consensys. SEC also blocked to be included in the exchange -traded funds (ETFS) that track Ethereum (ETH) as it reviewed applications to these products in 2024.
The CCI letter asked SEC to give guidance a lot as is done for Memecoin issues, miners and for some stableco -issuers, stating that their activities fall outside the agency’s legal concern. While these statements are not binding – not even as formal guidance – they are intended as markers to set the boundaries of the regulator’s current thinking.
“Dominestically pursues some states’ securities regulators enforcement actions relating to efforts,” according to the coalition. “Guidance from the Commission can help send a clear signal that the United States at least at the federal level adopts the rules of common sense that supports innovation and true to the restrictions on securities law.”
Since the beginning of President Donald Trump’s administration, SEC has generally taken a much more friendly attitude towards digital assets. The new chairman Paul Atkin’s signaled at his first public event on Friday – a crypto round table – that he is open to consider how the agency has treated cryptic companies.
The Crypto companies are not alone in seeking a new direction on stack. In February, US Senators sent a letter to the regulator calling for it to rethink its opposition to putting itself in the industry’s Spot -Tfs.
