American academic institutions urge the SEC to implement strict encryption stake rules and regulations.

Gate News bot news, recently, representatives from several universities met with the SEC Crypto Assets Working Group to discuss the stake rules manual.

The conference representatives come from the University of California, Berkeley School of Law, Georgetown University Law Center, the University of Chicago Law School, and the venture capital firm Placeholder.

According to the meeting minutes, the discussion focused on the narrow definition of digital asset stake, economic safeguards, and open source requirements.

The delegation works under the name of Berkeley Blockchain and Law (BLAB) and requests that the SEC certifies the term “stake” to be applicable only to products that perform protocol-level validation and require prior approval for any retail marketing using that label.

They compared this method with the “80% name rule” of mutual funds, believing that precise terminology could prevent custodial yield programs from masquerading as core network stakes.

In addition, the group also proposed to set the disclosed revenue cap at the basic return rate of the protocol and to limit intermediary fees to 5% of that return rate, in order to curb aggressive advertising. However, if the provider can offer verifiable cost data to justify the increase in fees, the fees may be raised.

BLAB also recommends standardizing the disclosure of total network revenue, net customer spending, and reduced liabilities on the interface, so that users can view real-time risk and fee data within the wallet and browser.

Source: CryptoSlate