The U.S. Securities and Exchange Commission (SEC) has clarified that staking activities on proof-of-stake (PoS) blockchain networks are not considered securities transactions. According to the SEC’s Division of Corporation Finance, this means that platforms offering staking services and individual investors do not need to register with the SEC. The announcement emphasized that staking does not meet the criteria of the Howey Test, particularly for “collateralized crypto assets.”
SEC Commissioner Hester Peirce supported the decision, stating that “providing security is not a security,” highlighting the legal distinction. The ruling opens the door for crypto ETFs to include staking features, with Jito Labs’ legal chief Rebecca Rettig noting that the decision will make it easier for such products to be launched. However, Democratic Commissioner Caroline Crenshaw criticized the move, arguing that it downplays investor risks and adds to regulatory uncertainty.
