Crypto Chaos: SEC’s Staking Standoff Leaves Industry in Limbo! 😱

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Ah, the cryptocurrency industry, that delightful realm where uncertainty reigns supreme! Industry groups, like moths to a flame, are beseeching the illustrious US Securities and Exchange Commission (SEC) to bestow upon them the sacred scrolls of formal guidance on staking. According to the ever-eloquent Allison Muehr, the head of staking policy for the Crypto Council for Innovation (a title that surely requires a monocle), this is a matter of utmost urgency for our dear Web3 infrastructure providers.

“Clarifying the SEC’s position on staking has become a top priority,” Muehr declared with the fervor of a poet at a wine-soaked soirée, during Solana’s Accelerate conference in the bustling metropolis of New York. “We’re about 25% of the way there,” she continued, as if progress were a fine wine that takes time to mature. “The SEC has engaged with us more constructively in the past four months than in the last four years, but alas, we still lack formal staking guidance.” 🍷

Changing Regulatory Stance

In the grand theater of politics, under the previous administration, the SEC played the role of the stern guardian, bringing enforcement actions against several crypto firms for daring to offer staking services, which they alleged were unregistered securities offerings. How quaint! Since the arrival of President Donald Trump, however, the SEC has softened its stance, as if it were a grumpy cat finally coaxed into a cuddle.

In February, the agency issued guidance declaring that memecoins do not qualify as investment contracts under US law. A revelation that surely sent shockwaves through the meme-loving populace! In April, they further clarified that stablecoins, too, do not qualify as securities if marketed solely as a means of making payments. How generous of them!

Yet, despite these revelations, 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. The suspense is palpable! 🎭

Other Policy Goals

Muehr, ever the optimist, expressed her hopes that the SEC will eventually approve staking for cryptocurrency ETFs, including the much-anticipated Solana (SOL) funds. “Getting there means first getting the SEC comfortable with the structure,” she mused, as if she were discussing the intricacies of a fine soufflé. “We’ve had some productive meetings with the agency,” she added, with a wink and a nudge.

“I’m hopeful we’ll see a Solana ETF and even a staked Solana ETF in the US sometime soon,” she proclaimed, her eyes sparkling with the promise of future riches. But let us not forget, the SEC is not the only agency the crypto industry seeks to charm. The Internal Revenue Service (IRS), that ever-watchful tax authority, has also taken a position that the industry finds rather disagreeable.

“The IRS finally issued a statement saying staking rewards are service income,” Muehr lamented, shaking her head as if she had just tasted a particularly sour lemon. “We disagree with that interpretation and continue to engage.” And so, the dance continues, a waltz of regulations and interpretations, where the music never quite seems to end! 🎶

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2025-05-27 00:03