In a significant shift in U.S. crypto policy, the Securities and Exchange Commission (SEC) made a groundbreaking announcement on May 29 regarding staking activities on proof-of-stake (PoS) blockchains. The SEC clarified that most staking activities do not constitute securities transactions, a departure from the agency’s previous stance under former Chair Gary Gensler.
This clarification, titled “Providing Security is not a ‘Security’,” removes the legal uncertainty that has hindered innovation and deterred American participation in network staking. While not a binding rule, this statement indicates a more open regulatory approach under the current administration. It could also pave the way for significant growth in staking-related infrastructure, which plays a vital role in the operation and decentralization of modern blockchain networks.
Commissioner Hester Peirce of the Division of Corporation Finance highlighted that staking is a voluntary effort by users to secure a network and is not a securities transaction under federal securities laws. The previous regulatory uncertainty had hindered Americans from participating in staking, impacting decentralization and censorship resistance in PoS-based blockchains.
The SEC’s statement applies to various groups involved in staking, including individuals staking assets individually or through delegated-proof-of-stake platforms, as well as staking-as-a-service providers. Ancillary services associated with staking, such as slashing coverage, are also not considered securities offerings. This clarification aligns with the SEC’s previous stance on not applying securities laws to cryptocurrency mining.
The shift in regulatory focus from wealth accumulation to the structural role of staking in PoS-based networks suggests a more open-minded approach from U.S. regulators towards the cryptocurrency sector. The Crypto Council for Innovation welcomed the change, emphasizing that staking is a core aspect of modern blockchains, not an investment contract.
Despite the significance of the SEC’s clarification, it was met with confusion by some in the crypto community. The dominance of Bitcoin and stablecoins in the 2025 narrative overshadowed PoS platforms like Ethereum. However, staking continues to grow, with staking ratios increasing across various blockchains.
The staking sector is also evolving, with innovations aimed at providing stakers with more flexibility and liquidity. This makes staking less restrictive and more profitable for validators. While the SEC’s clarification may not have immediate effects on token prices or mainstream attention, it sets the stage for future innovation and growth in the staking landscape.
In conclusion, the SEC’s clarification on staking marks a significant step towards deregulating the U.S. crypto landscape. As staking becomes more liquid, accessible, and integral to blockchain infrastructure, this regulatory clarity could spur a new wave of decentralization and growth in the industry. The stakes have indeed changed for the better.