In a most delightful twist of fate, the illustrious US Securities and Exchange Commission (SEC) has graced us with fresh guidance, declaring that crypto staking activities are, in fact, not in violation of the securities laws. How positively thrilling for the Proof-of-Stake (PoS) blockchains, particularly our dear Ethereum!
ETH: $2,595
24h volatility: 3.0%
Market cap: $313.35 B
Vol. 24h: $22.93 B
On a rather splendid Thursday, May 29, the SEC’s Division of Corporation Finance, in a statement that could only be described as a beacon of clarity, noted that “Protocol Staking Activities” on a PoS blockchain are nestled comfortably within one of the Securities Act exemptions. Thus, they “don’t need to register with the Commission transactions under the Securities Act.” How charmingly convenient!
Moreover, the SEC has classified staking rewards as a service provided by node operators, rather than profits earned through “managerial efforts.” In other words, it seems that the SEC has decided that staking is more akin to a delightful tea party than a profit-making venture, and thus, it escapes the clutches of securities regulation.
SEC: Custodial Staking is a No-Show for Securities Laws as Well
In a further stroke of genius, the SEC has proclaimed that custodial staking shall also evade the securities laws, as custodians merely act as “agents in connection with staking” and do not directly decide the staking amount. How very generous of them!
Hester Peirce, the Republican SEC Commissioner and the head of the agency’s Crypto Task Force, has described this guidance as a significant leap toward clarity for stakers and staking-as-a-service providers in the United States. She quipped:
“Uncertainty about regulatory views on staking discouraged Americans from doing so for fear of violating the securities laws. This artificially constrained participation in network consensus and undermined the decentralization, censorship resistance, and credible neutrality of proof-of-stake blockchains.”
Ah, the irony!
This recent development could very well pave the way for staking on the long-awaited spot Ethereum ETF, which has been languishing in the SEC’s waiting room. Crypto asset manager Grayscale has been pushing for the Ether ETF staking facility with the fervor of a child at a candy store. Inflows into spot Ether ETFs are once again gathering pace, with nine consecutive days of inflows. How delightful!
Additionally, the division’s staff clarified that ancillary staking services, including slashing, early unbonding, and alternate rewards payment schedules, are not considered securities, describing them as “administrative or ministerial in nature.” A round of applause for the bureaucratic ballet!
However, let us not forget that the guidance did not address other staking models like liquid staking and restaking. The staff emphasized that their statement “has no legal force or effect.” A rather cheeky reminder that in the world of crypto, nothing is ever truly set in stone!
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2025-05-30 17:35