SEC Clarifies: Most Staking Activities Not Securities
On May 29, the U.S. Securities and Exchange Commission (SEC) declared that most staking activities on proof-of-stake (pos) blockchains don’t count as securities transactions. This change reflects a less aggressive stance compared too the previous governance.
The SEC’s statement, “Providing Security is Not a ‘security’,” reassures stakers and reduces legal uncertainty. Even though it’s not a binding rule, it shows a more welcoming regulatory attitude. this move could boost staking-related growth, which is vital for blockchain networks’ operation and decentralization.
Commissioner Hester Peirce explained that certain staking activities on PoS blockchains do not fall under federal securities laws. Staking is a user-led effort to ensure network security, but past regulatory ambiguity discouraged U.S.participation. This limitation hindered decentralization and censorship resistance.
The SEC’s clarification applies to individuals, services, and staking platforms, both custodial and non-custodial. Ancillary services, like slashing coverage, are also not considered securities offerings.
This announcement follows the SEC’s previous stance on cryptocurrency mining. It aligns with new regulatory changes ushered in by the post-Gensler era, starting in 2025.
The Crypto Council for Innovation praised the change,saying it recognizes staking’s true role in blockchain operations. Alison Mangiero, head of staking policy, thanked the SEC for this move.
Despite the news, some crypto enthusiasts are confused about its impact on token prices.Bitcoin and stablecoins dominated 2025, while PoS platforms, like Ethereum, faced criticism.
However, staking ratios are steadily increasing. Ethereum’s staking ratio reached 28% by the end of 2024, while other PoS blockchains saw over 50%, indicating growing investor interest.
The SEC’s clarification may not promptly affect crypto prices, but it fosters innovation and participation in the U.S. crypto space.
