SEC Clarifies Staking Activities Not Securities Issuance

The U.S. Securities and Exchange Commission (SEC) has issued a significant clarification regarding the regulatory status of certain "staking" activities within Proof of Stake (PoS) networks. On May 29, 2025, the Corporate Finance Division of the SEC released a statement specifying that three types of staking activities do not constitute the issuance or sale of securities under the Securities Act of 1933 and the Securities Exchange Act of 1934. These activities include node operator self-staking, self-custody staking, and custody institution staking on behalf of clients. This clarification means that participants in these staking activities are not required to register with the SEC or rely on registration exemptions, thereby reducing compliance risks significantly.

The SEC's statement further elaborates that staking rewards are considered service rewards provided by the PoS network to validators based on the protocol. This clarification underscores that these rewards are not derived from the entrepreneurial or managerial efforts of others, thereby affirming their legitimate and compliant nature. This move by the SEC is expected to drive a more compliant environment for digital asset activities, providing clearer guidelines for participants and reducing regulatory uncertainties.

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