US SEC Confirms Crypto Staking on PoS Blockchains Is Not Subject to Securities Laws
The US Securities and Exchange Commission (SEC) has released new guidance confirming that crypto staking activities do not violate securities laws. This clarification supports Proof-of-Stake (PoS) blockchains like Ethereum and could facilitate staking options for Ether ETFs.
- The SEC's Division of Corporation Finance stated that "Protocol Staking Activities" on PoS blockchains are exempt from Securities Act registration.
- Staking rewards are classified as services provided by node operators, not profits from managerial efforts, thus avoiding securities regulation.
- Custodial staking also falls outside securities laws as custodians act merely as agents without direct control over staking amounts.
- Commissioner Hester Peirce emphasized that this guidance reduces uncertainty for stakers and staking service providers in the US.
- This development may pave the way for staking on spot Ethereum ETFs, which are currently awaiting SEC approval.
- Ancillary staking services such as slashing and early unbonding are deemed non-securities, being characterized as administrative functions.
- The guidance does not address liquid staking or restaking models and states it has no legal force or effect.