Crypto staking on proof-of-stake blockchains not a security: SEC staff

SEC Commissioner Hester Peirce has backed the guidance, saying it gives clarity to stakers, while her peer Caroline Crenshaw claims it ignores existing laws.

US Securities and Exchange Commission staff has given new guidance around the most common crypto staking activities, saying they are not in violation of securities laws.

The SEC’s Division of Corporation Finance said in a May 29 staff statement that “Protocol Staking Activities” such as crypto staked in a proof-of-stake blockchain, “don’t need to register with the Commission transactions under the Securities Act,” or fall within “one of the Securities Act’s exemptions from registration.”

It added that staking rewards are compensation for a service provided by node operators, not profits earned from “others’ entrepreneurial or managerial efforts,” and do not fall under securities regulation.

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