Recent changes in the SEC’s approach to staking represent potential progress in crypto regulation, linked to the recognition of distinctions between network participation and investments.
A Turning Point for Crypto Regulation
The SEC’s May 2025 guidance on specific staking activities marked the first time the SEC publicly acknowledged that some forms of staking may fall outside the definition of securities transactions. This suggests that contributing to blockchain consensus, particularly in a non-custodial or protocol-native manner, might not require securities registration.
Policy Progress Starts with Protocol-Level Understanding
This shift occurred not just from legal theory but also from technical explanations. Effective dialogue between regulators and the industry required a deeper understanding of validator operations, staking mechanics, and protocol-level design. The SEC is beginning to recognize that not every staking model involves a 'promoter', an 'issuer' or promises of profit, potentially allowing developers to build compliant systems without fears of triggering securities laws.
Building Smarter Policy Through Collaboration
The SEC starts to differentiate between infrastructure participation and investment. This is a crucial step in creating a regulatory environment that is more attuned to real-world conditions. Experts emphasize that applying one-size-fits-all securities laws to blockchain systems risks distorting incentives and leads to over-regulation, jeopardizing the competitiveness of the US in blockchain technology.
The SEC's statement on staking indicates a willingness to engage in dialogue and understand the real mechanisms of blockchain systems. Progress is achievable if the industry continues to engage with policymakers, supplying real-world examples and explanations.
