Proof-of-Stake Alliance Releases Playbook to Standardize Staking Operations, Boosting Growth and Trust

The Proof-of-Stake Alliance (POSA) has released its Playbook, a comprehensive guide aimed at standardizing operations among validators, custodians, and staking platforms. This initiative seeks to address the fragmented landscape of staking, which has historically undermined trust and hindered growth. The Playbook outlines core principles such as robust custody safeguards, on-chain proof-of-reserves attestations, clear fee and yield disclosures, incident-response protocols, and regular third-party audits. By providing a unified framework, POSA aims to transform ad-hoc practices into a reliable and interoperable foundation for both retail users and large institutions.

Having a common operational blueprint is expected to accelerate growth and minimize risk across the staking ecosystem. Providers can streamline integrations with wallet apps, exchanges, and DeFi protocols by adhering to the same APIs and reporting formats. End users will benefit from predictable, consistent interfaces for delegating assets and monitoring rewards. Shared security guidelines and standard incident-response playbooks will reduce the likelihood of high-profile exploits and allow service providers to cooperate during outages or attacks. Institutions looking to enter staking markets will gain clarity on risk parameters, enabling them to onboard at scale without bespoke due diligence for each platform. Ultimately, unified practices are expected to reduce costs for operators and foster a more resilient network that attracts new capital and participation.

Despite the rapid growth of staking, regulatory ambiguity has dampened institutional interest. To address this, more than thirty exchanges, infrastructure firms, and wallets joined the Crypto Council for Innovation in petitioning the SEC. Their core message is that staking secures network consensus and finality, and so long as rewards are protocol-defined rather than the result of third-party management, they do not constitute securities. The coalition urges the SEC to issue interpretive guidance that affirms native protocol staking is outside securities jurisdiction, defines which custodial or managed-staking arrangements require broker-dealer or investment-advisor registration, and distinguishes between genuine securities offerings and routine network-security services. By drawing parallels to the SEC’s position on proof-of-work mining and memecoins, the letter argues for clear boundaries that protect consumers without stifling innovation.

Staking underpins the security and decentralization of proof-of-stake blockchains. When token holders lock assets as collateral to validate blocks, they create economic incentives aligned with network health and consensus integrity. Misbehavior triggers slashing penalties, deterring malicious actors. The result is a robust, permissionless system in which distributed validators secure transactions and finalize new blocks—functions analogous to routing packets in the internet or securing servers in cloud computing. Treating staking as a core infrastructure service rather than an investment contract allows regulation to focus on consumer protections—such as custody safeguards and clear disclosures—while preserving the protocol’s technical autonomy. This distinction is crucial for unlocking new use cases, such as liquid staking derivatives in DeFi, staking-backed collateral models in lending, and tokenized governance mechanisms across ecosystems.

Building a robust staking ecosystem requires parallel progress on two fronts. First, industry players must demonstrate adherence to POSA’s Playbook through real-world pilots and shared audit disclosures. Validators, custodians, and staking platforms should publish common performance metrics, proof-of-reserve attestations, and incident-response reports. Second, the industry must continue its dialogue with the SEC—submitting data, model compliance frameworks, and legal analyses to inform rulemaking. A synchronized approach—where technical best practices inform regulatory safe harbors—ensures that guidelines become enforceable norms rather than voluntary ideals. This coordinated path enables regulators to differentiate between protocol-native staking and third-party investment offerings. Clear guardrails remove legal uncertainty, enabling institutional asset managers to integrate staking into diversified portfolios. Meanwhile, developers gain confidence to build innovative staking-based products without fear of retroactive enforcement.

With unified standards in place and regulatory clarity on the horizon, staking is poised to attract significant institutional capital, catalyze new DeFi innovations, and cement proof-of-stake as the backbone of a decentralized internet. The combined market capitalization across PoS networks is $370 billion, representing roughly 13 percent of global crypto value. The total value locked in staking has shown a 20 percent year-over-year growth, surpassing $330 billion in Q1 2025. The average annualized staking yield for top-ten PoS tokens is 15.4 percent, up from 13.9 percent in Q4 2024. Over 1 million daily block validations are secured through PoS consensus, demonstrating scalability and resilience. These developments underscore the potential for staking to drive further innovation and growth in the crypto ecosystem.