Crypto industry urges SEC to clarify staking stance
Cryptocurrency industry groups are urging the US Securities and Exchange Commission (SEC) to issue formal guidance on staking, citing continued regulatory uncertainty for Web3 infrastructure providers, according to Allison Muehr, head of staking policy for the Crypto Council for Innovation, a trade group.
Clarifying the SEC’s position on staking has become a top priority for the crypto industry, Muehr said during Solana’s Accelerate conference in New York.
“We’re about 25% of the way there,” Muehr said. “The SEC has done more constructive engagement with us in the past four months than in the last four years, but we still don’t have formal staking guidance.”
Related: SEC acknowledges slew of crypto ETF filings as reviews, approvals accelerate
Changing regulatory stance
Under the previous US presidential administration, the SEC brought enforcement actions against several crypto firms for offering staking services it alleged were unregistered securities offerings.
Since President Donald Trump took office in January, the SEC has softened its stance.
In February, the agency issued guidance stating that memecoins do not qualify as investment contracts under US law.
In April, the regulator clarified that stablecoins also do not qualify as securities if they are marketed solely as a means of making payments.
Still, the agency has yet to approve staking in exchange-traded funds (ETFs) or issue formal guidance on how staking services can be offered compliantly in the US.
Other policy goals
Muehr said she is optimistic the SEC will eventually approve staking for cryptocurrency ETFs, including for proposed Solana (SOL) funds.
“Getting there means first getting the SEC comfortable with the structure,” she said, noting the industry has recently had “some productive meetings with the agency.”
“I’m hopeful we’ll see a Solana ETF and even a staked Solana ETF in the US sometime soon.”
The SEC is not the only agency the crypto industry is looking to persuade. Muehr said the Internal Revenue Service (IRS) — the top US tax authority — has also taken a position the industry opposes.
“The IRS finally issued a statement saying staking rewards are service income,” she said. “We disagree with that interpretation and continue to engage.”
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Chancellor Rachel Reeves has dodged calls from her predecessor Anneliese Dodds for a wealth tax to be considered ahead of this autumn’s budget.
When Sir Keir Starmer became Labour leader in 2020, Ms Dodds was his first pick for shadow chancellor. However, she did not last long and was replaced by Ms Reeves, who then got the government job after last year’s election win.
Speaking to the Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, Ms Dodds said she had examined wealth taxes when she was briefly in the shadow chancellor job and how one could be implemented.
She said: “I would hope the Treasury is considering that kind of evidence, as well as other changes that have been put forward.”
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‘Rachel Reeves would hate what you just said’
Asked today if about Ms Dodds’ intervention, Ms Reeves said: “Decisions around tax are decisions that are made at a budget and we’ll make those decisions in the appropriate way, but the number-one priority of this government is to grow the economy.
“And that means bringing more investment into Britain, creating more good jobs paying decent wages here in Britain.
Listen here to hear Ms Dodds’ full comments:
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“We’ve got to get the balance right on taxation because we want that investment, we want those jobs to come here.
“That’s why we’re reforming the planning system, secured three trade deals in the first year of this Labour government, cutting back on unnecessary regulation, and reforming our pension system to unlock money for businesses to be able to invest here in the UK.”
Read more:
2021: Dodds demoted, Reeves promoted
Dodds resigns from govt over aid cut
What is a wealth tax?
The government’s financial position is stretched ahead of the next budget, due at the end of autumn.
Ms Reeves has committed herself to not changing her fiscal rules, leaving little wiggle room to avoid tax rises or spending cuts.
This is due to the government’s inability to save money through policies like welfare reform, which were gutted due to a rebellion of backbench Labour MPs.
Last week, Business Secretary Jonathan Reynolds branded the suggestion of a wealth tax “daft” – but he has less influence over the writing of the budget than the chancellor.
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Meanwhile, reports from the Daily Telegraph suggested that Deputy Prime Minister Angela Rayner backed increasing taxes, including reinstating the pensions lifetime allowance and a higher corporation tax level for banks.
Ms Dodds also wants to see those considered.
After banning retail access to crypto ETNs and derivatives in 2021, the FCA has reversed its approach in favor of ETN access for retail.
Following the landmark US passage of the GENIUS Act, Fabian Dori of Sygnum Bank breaks down what lies ahead for stablecoins, institutional adoption and global crypto regulation.
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