On May 29, 2025, the U.S. Securities and Exchange Commission (SEC) released new guidance regarding cryptocurrency staking that provides legal clarity for market participants.
SEC Clarifications on Staking
The SEC has clearly defined that staking directly linked to the consensus process in Proof-of-Stake (PoS) networks will not be considered a securities offering. This applies to both solo staking and delegated staking as well as custodial arrangements, provided they participate directly in the consensus process.
Allowed Types of Staking
The new SEC rules permit the following types of staking:
* **Solo Staking:** Users can stake their assets to participate in network validation without being classified as a securities offering. * **Delegated Staking:** Users can delegate their validation rights to third parties while maintaining control over their assets. * **Custodial Staking:** Custodial services can be provided by crypto exchanges as long as assets are clearly held for the owner's benefit. * **Validator Node Management:** Earning rewards through the operation of validator nodes is also not considered a securities offering.
Impact of the New Rules on Market Participants
The SEC's new guidance enhances the ability for various participants in the PoS ecosystem to engage without fear of legal repercussions. Validators and node operators can now participate with reduced legal risks. This also encourages PoS network developers to create projects without needing to alter token economics. Retail investors and institutional participants now can engage in staking with increased confidence.
The new SEC rules could represent a turning point for the staking market in the U.S., providing a reliable framework for participation in PoS networks and fostering their growth.
