Crypto Industry Urges SEC to Provide Clarity on Staking Regulations
The cryptocurrency industry is pressing the U.S. Securities and Exchange Commission (SEC) to issue formal guidance on staking, as regulatory uncertainty continues to cloud the future of Web3 infrastructure providers.
Speaking at the Solana Accelerate conference in New York, Allison Muehr, head of staking policy at the Crypto Council for Innovation, said that while engagement with the SEC has improved under the current administration, clear rules on staking are still absent.
“We’re about 25% of the way there,” Muehr stated. “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.”
A Shift in Regulatory Tone
The crypto industry has long argued that staking — the process of locking up crypto assets to help secure a blockchain network — is fundamentally different from offering securities.
Under the Biden administration, the SEC brought multiple enforcement actions against staking providers, claiming their services constituted unregistered securities offerings. However, since President Donald Trump took office in January, the SEC has notably softened its stance on various crypto-related activities.
In February, the SEC said memecoins do not qualify as investment contracts. Then in April, it clarified that stablecoins marketed strictly as payment tools do not qualify as securities under U.S. law.
Despite this more crypto-friendly tone, the SEC has not yet issued any formal guidance on staking or approved staking functionality in any of the crypto exchange-traded fund (ETF) filings currently under review.
Industry Hopes for ETF Staking Approval
Muehr expressed optimism that staking may eventually be approved for crypto ETFs — especially for Solana (SOL) funds, which are gaining attention among asset managers.
“Getting there means first getting the SEC comfortable with the structure,” Muehr explained. “I’m hopeful we’ll see a Solana ETF and even a staked Solana ETF in the U.S. sometime soon.”
The SEC is currently reviewing multiple ETF proposals that include staking components, but decisions have been delayed as the agency weighs the regulatory implications.
IRS Stance Also in Question
While the SEC is the primary focus of regulatory engagement, Muehr noted that the Internal Revenue Service (IRS) has also taken a controversial stance on staking.
Earlier this year, the IRS ruled that staking rewards are classified as service income — meaning they are taxable upon receipt.
“We disagree with that interpretation and continue to engage,” said Muehr, emphasizing that the industry believes staking rewards should not be taxed as ordinary income.
Looking Ahead
With growing bipartisan interest in crypto regulation and multiple bills under consideration in Congress — including the GENIUS Act and the STABLE Act — crypto leaders are optimistic that staking and broader digital asset policies will soon receive more legal clarity.
The SEC’s crypto task force, led by Commissioner Hester Peirce, is expected to release a major report in the coming months, which could include early steps toward staking rulemaking.
Until then, staking providers and Web3 developers remain in limbo — encouraged by better dialogue, but still waiting for the clarity they say is long overdue.
