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US crypto groups urge SEC for clarity on staking

Nearly 30 crypto advocate groups led by the lobby group the Crypto Council for Innovation (CCI) have asked the Securities and Exchange Commission for clear regulatory guidance on crypto staking and staking services.

The CCI’s Proof of Stake Alliance (POSA) group argued in an April 30 letter to the agency’s Crypto Task Force lead, SEC Commissioner Hester Peirce, that staking is fundamentally a technical process, not an investment activity. 

“Staking isn’t niche — it’s the backbone of the decentralized internet,” the letter said. 

The letter responded to the SEC’s call for public input on whether staking and liquid staking, where crypto users lock up their tokens to earn more, should be regulated under federal securities laws.

The coalition called for the SEC to support responsible inclusion of staking features in exchange-traded products (ETPs), and “avoid overly prescriptive rules that could freeze market structures and stifle innovation in the staking space.”

The group argued that staking fails to meet the securities-defining Howey test definition of an “investment contract” as stakers retain ownership of their assets.

Proof-of-Stake, SEC
Source: Crypto Council for Innovation

They added that blockchain protocols, not a staking provider’s efforts, determine rewards, and providers don’t deliver profits through managerial decisions like a company does. 

The letter requested that the SEC Issue principles-based guidance similar to recent SEC staff statements on proof-of-work mining.

“In the past 4 months, we’ve seen more movement and constructive dialogue with the SEC than in the past 4 years,” the group said. “Now, the industry is stepping up with concrete principles to include in guidance — a reflection of this new collaborative approach.”

Related: Ethereum ETF staking will have little impact without multimonth rally: Analyst

The group argued that the existing securities disclosure regime is ill-suited for staking services, which are fundamentally technical rather than financial in nature. 

Big names in support of staking clarity 

The Proof of Stake Alliance includes several high-profile crypto organizations and companies, including the venture capital firm Andreessen Horowitz (a16z), blockchain software firm Consensys, and the crypto exchange Kraken, which restored staking services in the US earlier this year.

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 on April 14.

In April, Bloomberg ETF analyst James Seyffart predicted that an Ether ETF that includes staking could come as soon as May.

Magazine: ZK-proofs unlock trillions in Bitcoin for DeFi — BitcoinOS and Starknet

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EU eyes euro stablecoins to challenge dollar monopoly

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EU eyes euro stablecoins to challenge dollar monopoly

EU eyes euro stablecoins to challenge dollar monopoly

The change in rhetoric followed a US dollar-pegged stablecoin boom in 2025 due to the passage of key legislation in the United States.

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Bybit secures regulatory approval in UAE

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Bybit secures regulatory approval in UAE

Bybit secures regulatory approval in UAE

The license came eight months after the regulator granted the company in-principle approval, and a few weeks after Bybit secured a non-operational license for Dubai.

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Starmer denies ministers involved in China spy trial collapse

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Starmer denies ministers involved in China spy trial collapse

Sir Keir Starmer has denied any ministers were involved in the collapse of the trial of alleged Chinese spies.

Christopher Cash, 30, a former parliamentary researcher, and teacher Christopher Berry, 33, were accused of spying for China, but weeks before their trial was due to begin, it was dropped.

Berry, of Witney, Oxfordshire, and Cash, of Whitechapel, east London denied the allegations.

Politics Latest: Starmer “less interested” in Blair than ceasefire

Sir Keir, his ministers and national security adviser Jonathan Powell have faced accusations they were involved in the trial being dropped.

The prime minister has maintained that because the last Conservative government had not designated China as a threat to national security, his government could not provide evidence to that effect, which the director of public prosecutions Stephen Parkinson said was required to meet the threshold for prosecution.

Mr Parkinson had blamed ministers for failing to provide the crucial evidence needed to proceed.

More on China

During a trade visit to India, the prime minister was asked whether any minister, or Mr Powell, were involved in the decision not to provide the Crown Prosecution Service (CPS) with evidence that, at the time of the alleged offences, China represented a threat to national security.

He replied: “I can be absolutely clear no ministers were involved in any of the decisions since this government’s been in in relation to the evidence that’s put before the court on this issue.”

He did not mention Mr Powell specifically.

Read more:
Blame game over trial collapse. Who’s right? Who’s wrong?

Christopher Cash (left) and Christopher Berry had the charges against them dropped in September. Pics: Reuters
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Christopher Cash (left) and Christopher Berry had the charges against them dropped in September. Pics: Reuters

Earlier this week, Mr Parkinson took the unusual step of sending MPs a letter to say the government had refused to label Beijing an enemy, which led to the case being dropped.

Sir Keir reiterated his line that the case could only rely on evidence from the period the pair were accused of spying, from 2021 to 2023, when the Conservatives were in government.

He said: “The evidence in this case was drawn up at the time and reflected the position as it was at the time,” the PM said in India.

“And that has remained the situation from start to finish.

“That is inevitably the case because in the United Kingdom, you can only try people on the basis of the situation as it was at the time.

“You can’t try people on the basis of the situation, as it now is or might be in the future, and therefore, the only evidence that a court would ever admit on this would be evidence of what the situation was at the time.

“It’s not a party political point. It’s a matter of law.”

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Is China an enemy to the UK?

Sir Keir’s assertion has been called into question by former top civil servants and legal experts.

Mark Elliott, professor of public law at the University of Cambridge, told Sky News there is no legal requirement for a country to be declared an enemy for someone to be tried for breaching the Official Secrets Act.

He said the current government was “cherry picking” what the previous government had said about China to claim they did not regard them as a threat to national security.

However, there are several examples of the Tory government saying China was a national security threat during the time Berry and Cash were accused of spying.

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