Ethereum News Today: Ethereum Staking Hits 1-Year High as SEC Clarifies Staking Regulations

Ethereum transaction volumes have surged to a one-year high, with the rise attributed to the U.S. Securities and Exchange Commission (SEC) issuing new guidance regarding staking activities. According to data from Dune Analytics, over 36 million Ether (ETH) is now staked on the Ethereum network, which accounts for nearly 30% of the total token supply [1]. This increase in staked tokens indicates a shift in strategy among Ethereum holders, who are locking their assets into smart contracts to earn staking rewards instead of selling them in the open market [2].

The SEC’s recent “Statement on Certain Liquid Staking Activities” released by its Division of Corporation Finance has added clarity to a previously murky legal landscape. The statement concluded that liquid staking activities — which involve issuing tokens that represent staked assets — do not constitute the offer or sale of securities under the 1933 Securities Act, provided that the associated tokens are not structured as investment contracts [3]. This has been widely welcomed by the DeFi industry, with Mara Schmiedt, CEO of blockchain developer company Alluvial, noting that the guidance could facilitate the integration of liquid staking tokens (LSTs) into institutional products [4].

However, the guidance has not gone unchallenged. SEC Commissioner Caroline Crenshaw expressed skepticism, stating that the division’s conclusions rely heavily on speculative factual assumptions that may not reflect the current state of the industry. She emphasized that the legal conclusions apply only if those assumptions hold true and noted that the statement represents the view of a single division rather than the entire commission [5]. Hester Peirce, another SEC commissioner known for advocating a more favorable regulatory approach to crypto, supported the statement, stating that it clarifies the SEC’s view that liquid staking activities are not securities offerings [6].

The recent surge in Ethereum staking has also been supported by on-chain activity. Onchainschool, a pseudonymous analytics firm, reported that over 500,000 ETH — worth approximately $1.8 billion — was staked in the first half of June alone [7]. Additionally, the number of Ethereum addresses with no selling history has risen, with nearly 23 million ETH currently held in such wallets. This trend suggests growing confidence in the long-term value of Ethereum and a reduction in the amount of ETH available for sale in the open market [8].

Despite this optimism, the DeFi industry still operates in a legal gray area in many jurisdictions. The SEC has delayed its decision on Bitwise’s application to include staking in its Ether ETF. Meanwhile, the proposed CLARITY Act, which aims to provide a regulatory framework for the DeFi industry, remains pending in Congress. In Europe, the Markets in Crypto-Assets (MiCA) regulation does not currently address DeFi protocols, though lawmakers are expected to prioritize this area in 2026 [9].

The Ethereum ecosystem appears poised for regulatory developments, and the recent SEC guidance — while not universally accepted — marks a significant step in defining the boundaries of legal activity within the crypto space. As the regulatory environment continues to evolve, the increased staking activity and growing network usage suggest that Ethereum and its related protocols are gaining traction among both retail and institutional participants.

Sources:

[1] CoinMarketCap article (https://coinmarketcap.com/community/articles/6893622d013d8370a0de868c/)