BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

SEC Staff Says Proof-of-Stake Crypto Staking Is Not a Security

by Dan K
May 30, 2025 - 12:53 pm
in Blockchain
U.S. SEC building with digital cryptocurrency icons representing staking and regulation

SEC Staff Releases Proof-of-Stake Crypto Staking Not a Security

The U.S. Securities and Exchange Commission (SEC) issued new guidance in which it clarified that most protocol-level crypto staking on proof-of-stake (PoS) blockchains is not a security offering.

Protocol Staking Not a Non-Security

In a May 29 release, the SEC’s Division of Corporation Finance indicated that staking crypto through PoS mechanisms is not covered under the Securities Act. According to the staff, such activities “don’t have to register with the Commission” and do not require registration exemptions either.

The guidance underscored that staking rewards are earned as compensation for providing a service — running validator nodes — and not based on others’ labor, a key distinction in securities law.

Second, custodial staking — where a third party stakes on behalf of a user — is not a securities offering. Staff explained custodians are mere agents and have no control over how much is staked.

Commissioner Peirce Praises Regulatory Certainty

Republican SEC Commissioner Hester Peirce, who leads the agency’s Crypto Task Force, supported the action, maintaining it gives much-needed clarity to American crypto users.

“Regulatory uncertainty about staking views discouraged Americans from staking,” she said, maintaining it also impeded network decentralization and consensus participation.

Peirce has long maintained that a regulatory system that encourages innovation with clear rules for participants is necessary.

Crenshaw Criticizes Legal Foundation

But Democratic Commissioner Caroline Crenshaw was a strong critic of the guidance, declaring that it “falls short of providing a reliable roadmap” for staking classification on the Howey test, the judicial standard for determining securities.

“The staff’s analysis is wishful thinking, not law,” Crenshaw said. “It’s another example of the SEC acting on assumptions of future legal outcomes.”

Crenshaw warned that omitting settled court decisions could undermine investor protection and legitimacy of the SEC.

The SEC’s latest move illustrates the internal conflict regarding regulation of cryptocurrency. Whereas Peirce views the guidance as pro-innovation, Crenshaw considers it a legally dubious deviation from disciplinary regulation.

Crypto consumers and staking services providers will likely welcome the clarity — even as legal uncertainties may persist, subject to future enforcement actions and court interpretations.

Tags: BlockchainSEC
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Exterior view of the Czech National Bank building in Prague, symbolizing the institution’s financial strategies and innovation.

Bank of England Governor Says Stablecoins Could Reduce Reliance on Banks

October 1, 2025

Andrew Bailey says stablecoins could reduce UK reliance on commercial banks by separating money from credit, signaling a...

blockchain

Spacecoin Executes First Blockchain Transaction Through Space

October 1, 2025

Spacecoin has achieved the first-ever blockchain transaction through space using a nanosatellite, marking a milestone for decentralization and...

The headquarters of the Autorité des Marchés Financiers (AMF) Investor in Paris, France, the regulatory body warning investors against ByBit.

French Officials Pressured Telegram to Censor Moldova Election Posts: Durov

September 28, 2025

Pavel Durov revealed French intelligence pressured Telegram to censor Moldova election content in 2024, which he refused, citing...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Bitcoin skepticism fades as nations gear up for adoption, says Samson Mow

September 28, 2025

Samson Mow predicts nation-states will move from skepticism to rapid Bitcoin adoption, fueling global FOMO and a rush...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service