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SEC Crypto Staking Guidance ‘Major Step Forward’ for US: Crypto Council

  • On May 29, the SEC’s Division of Corporation Finance announced that some staking activities on proof-of-stake blockchains are not considered securities transactions under federal securities regulations.
  • This guidance follows previous scrutiny and legal challenges involving staking services, particularly cases against Kraken and Coinbase that were dismissed, signaling a shift from prior SEC enforcement approaches.
  • The guidance addresses different staking approaches, including operators staking their own assets, staking via third-party platforms under self-custody arrangements, and staking managed by custodians who serve solely as agents without exercising control over the assets. It highlights that staking rewards are compensation for network services rather than returns from entrepreneurial or management efforts.
  • The SEC clarified that custodians do not have authority over the choice, timing, or amount of an owner's Covered Crypto Assets that are staked, characterizing related services as administrative tasks not governed by securities regulations.
  • While the guidance may reduce regulatory uncertainty and encourage participation in staking, Commissioner Crenshaw dissented, arguing it conflicts with laws and creates ambiguity about applicable enforcement in crypto.
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Crypto Briefing broke the news in on Friday, May 30, 2025.
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