Law Schools Urge SEC to Regulate Cryptocurrency Staking Rules
The SEC was prompted to evaluate staking advertisements and restrict phony yield promotions from platforms. Law schools proposed a fee cap of 5 percent and open information tools for all crypto staking. Threats from liquid staking and restaking need full SEC review before they affect users. A union from UC Berkeley School of Law, Georgetown Law Center, and the University of Chicago Law School met with the SEC’s Crypto Job Force on June 23. Joined by venture capital firm Placeholder, the delegation used detailed proposals created to close regulatory gaps in current staking practices. The conference followed the SEC’s personnel bulletin dated May 29, which clarified that the majority of non-custodial and delegated staking activities do not require registration. Their objective was to protect retail investors and prevent centralized platforms from rebranding yield-generating services as certified staking products. They proposed stringent use of the term ‘staking,’ advising that just platforms providing protocol-level validation use it legally. The SEC was advised to review staking ads and restrict fake yield promos from platforms. Law schools proposed a cost cap of 5 percent and open information tools for all crypto staking. Risks from liquid staking and restaking need complete SEC review before they affect users. A coalition from UC Berkeley School of Law, Georgetown Law Center, and the University of Chicago Law School met with the SEC’s Crypto Job Force on June 23. Joined by venture capital company Placeholder, the delegation used comprehensive propositions designed to close regulatory gaps in current staking practices. The conference followed the SEC’s staff bulletin dated May 29, which clarified that most non-custodial and delegated staking activities do not require registration. Their objective was to protect retail financiers and prevent central platforms from rebranding yield-generating services as compliant staking products. They proposed stringent use of the term ‘staking,’ advising that just platforms offering protocol-level validation use it legally. Such access would encourage open evaluation by the whole blockchain community and consequently help reduce systemic risk.
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Can the SEC Bridge the Dangers of Liquid and Restaking? While procedure staking gotten clearness, liquid staking remains mostly unregulated.
