A group representing cryptocurrency investors has challenged the U.S. Securities and Exchange Commission’s (SEC) classification of staking as securities. In a letter to the SEC’s task force on cryptocurrencies, the Cryptocurrency Innovation Council of the Staking Benefits Alliance argued that this logic should be extended to staking as well. The council highlights recent statements from SEC staff stating that proof-of-work cryptocurrency mining does not fall under their purview for securities transactions and urges the SEC to treat staking similarly. The group contends that when users stake cryptocurrencies, they are essentially locking them up to participate in blockchain operation and security, receiving rewards as compensation. They argue that this participation signifies valuable technical services being rendered, making the resulting rewards more akin to service payments than passive investment income.