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#SEC Faces Internal Criticism Over New #Crypto Staking Guidelines

The Securities and Exchange Commission has sparked controversy with fresh guidance exempting certain #staking services from securities registration.

Former SEC enforcement chief John Reed Stark called the shift "shameful abdication" of investor protection duties.

Commissioner Caroline Crenshaw warned that the guidance contradicts established case law and the Howey test precedent.

The agency previously alleged that exchanges like #Coinbase offered unregistered securities through staking programs.

Cases were ultimately dismissed in early 2025 as part of the SEC's broader regulatory pivot.

Critics argue the Commission's "fake it till we make it" approach creates more confusion than clarity.

The deregulatory moves include closing investigations, dropping lawsuits, and launching industry roundtables.

  x.com/JohnReedStark/status/192...