US crypto groups urge SEC for clarity on staking

Published

9 hours ago

May 1, 2025

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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.”

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.

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Politics

Morgan Stanley eyes crypto rollout for E*Trade platform: Bloomberg

Published

59 mins ago

May 1, 2025

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Morgan Stanley eyes crypto rollout for E*Trade platform: Bloomberg

Banking giant Morgan Stanley reportedly plans to list cryptocurrencies on its E*Trade investment brokerage and trading platform.

According to a May 1 Bloomberg report, the firm intends to list crypto assets on E*Trade in 2026. The plan is still in early development, and the bank is said to be exploring partnerships with established crypto firms to power the service. Internal discussions about cryptocurrency support reportedly began in late 2024.

Banking, Banks, Cryptocurrency Exchange, Morgan Stanley — *E*Trade homepage. Source:* *E*Trade*

This would not be Morgan Stanley’s first exposure to digital assets. The bank’s wealthiest clients have had access to crypto exchange-traded funds (ETFs) and futures for some time, with the firm’s advisers allowed to pitch Bitcoin ETFs since August 2024.

Regulatory tailwinds push crypto forward

The news follows previous reports that Morgan Stanley was considering adding cryptocurrency trading to its E*Trade online brokerage platform in early January. The reports at the time cited the expectations of a friendlier crypto regulatory environment.

The move comes amid an increasingly favorable regulatory environment in the United States following the election of President Donald Trump, who campaigned on a pro-crypto platform and is personally involved in several blockchain ventures.

The first 30 days of the Trump administration brought significant changes to the local crypto industry. More recently, US crypto proponents have shown optimism following the swearing-in of pro-crypto Securities and Exchange Commission Chair Paul Atkins.

The SEC had significantly changed its stance even before Atkins took office. In late February, the agency had already paused multiple cryptocurrency enforcement cases with imminent deadlines.

This is a developing story, and further information will be added as it becomes available.

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Politics

Eric Trump: USD1 will be used for $2B MGX investment in Binance

Published

2 hours ago

May 1, 2025

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Eric Trump: USD1 will be used for B MGX investment in Binance

Abu Dhabi-based investment firm MGX will use a stablecoin linked to US President Donald Trump’s family to settle a $2 billion investment in Binance, the world’s largest cryptocurrency exchange.

The World Liberty Financial USD (USD1) US dollar-pegged stablecoin was launched by the Trump-associated crypto platform World Liberty Financial (WLFI) in March 2025.

MGX will use the USD1 stablecoin for its $2 billion investment in the Binance exchange, according to an announcement by Eric Trump during a panel discussion at Token2049 in Dubai. Trump, the son of the president, serves as executive vice president of the Trump Organization.

Eric Trump: USD1 will be used for $2B MGX investment in Binance — *Source:* *Cointelegraph*

MGX announced its investment in Binance on March 12, marking the first institutional investment in the exchange and one of the biggest funding deals in the entire Web3 industry.

At the time, Binance declined Cointelegraph’s request to disclose what stablecoin was used in the transaction.

This marks the Abu Dhabi-based investment firm’s first venture into the cryptocurrency space.

Banks, financial system is “a joke,” says Eric Trump

During the panel discussion, Eric Trump criticized the inefficiencies and limited operating hours of the traditional financial system:

“The US is seeing that the financial world has to progress. It’s a joke. Why do banks run nine to five, Monday to Friday, with an hour and a half of lunch break? It doesn’t make sense.”

Sending money internationally through SWIFT is slow, costly, and complex. Crypto makes banks redundant,” he added.

The average transaction time on the SWIFT payment network is 20 hours and seven minutes, according to analysis published by Statrys. However, 75% of SWIFT transactions involve one or two intermediary banks, meaning that these average 1 day and 11 hours to settle.

In contrast, a USDt (USDT) or USDC (USDC) stablecoin transaction on Ethereum will settle within two to five minutes.

“We’re at the dialogue phase of the crypto revolution right now, and the people who are going to make it big are the people who see it today, not in five years,” Eric Trump added.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Politics

Voting under way to decide thousands of councillors and Runcorn and Helsby by-election

Published

6 hours ago

May 1, 2025

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Voting under way to decide thousands of councillors and Runcorn and Helsby by-election

Voting is under way in local elections across England, as well as in the Runcorn and Helsby by-election.

Due to Ofcom rules, Sky News is limited on what it can report until polls close at 10pm.

The votes mark the first electoral test for the party leaders since last year’s general election.

In total, 23 of England’s 317 local authorities are holding elections, alongside the Isles of Scilly.

The make up of around 1,270 parish councils are also due to be decided.

And six metro mayors are up for election.

The West of England, Cambridgeshire and Peterborough, Doncaster, and North Tyneside mayoralties already have a mayor in place – while Greater Lincolnshire and Hull and East Yorkshire are choosing a mayor for the first time.

Meanwhile, a by-election is being held in Runcorn and Helsby after previous Labour MP Mike Amesbury agreed to stand down following his conviction for punching a man in the street.

While this result is likely to come in overnight, most local election results won’t be known until Friday.

All voters in these elections must be over 18, and be registered.

Join Sky News presenter Jonathan Samuels and deputy political editor Sam Coates from midnight as the results start coming in. Lead politics presenter Sophy Ridge, political editor Beth Rigby, and data and economics editor Ed Conway will be taking over on Friday to report and explain what has happened.