Hold onto your tokens, Hodlers! The U.S. Securities and Exchange Commission’s Division of Corporation Finance dropped a bombshell on Thursday: Blockchain staking activities don’t count as securities offerings. That means if you’re into Protocol Staking Activities, you can skip the whole SEC registration hassle.
According to the division, this chill stance covers staking “covered crypto assets” on proof-of-stake networks, plus third-party helpers like custodians and node operators. Even the “ancillary” services, think self-staking, self-custodial staking with a third party, and custodial staking on your behalf, are off the SEC hook.
They based this conclusion on the infamous Howey Test, declaring that covered crypto assets just don’t fit the bill of “financial instruments” or securities.
Crypto ETFs and Staking Services Can Breathe Easier
SEC Commissioner Hester Peirce called the statement a “welcome clarity” for both stakers and “staking-as-a-service” providers. Her take? “Providing security is not a ‘security.’”
Over on social media platform X, Rebecca Rettig, Chief Legal Officer at Jito Labs, cheered that this clears the path for crypto exchange-traded funds (ETFs) to include staking in their portfolios.
Yep
— Rebecca Rettig (@RebeccaRettig1) May 29, 2025
Since former Chair Gary Gensler left the SEC, the agency has been on a clarity mission, recently stating in March that proof-of-work mining isn’t a securities activity either. Back in Gensler’s day, staking services from Kraken, Coinbase, and MetaMask were under serious SEC scrutiny.
Not Everyone’s Buying It
Of course, no crypto news is complete without a dash of drama. Democrat SEC Commissioner Caroline Crenshaw slammed the new statement, calling it an “incomplete picture” that downplays the “significant” risks these crypto products might pose to investors.
Looks like the SEC’s crypto saga is far from over, but for now, staking enthusiasts can breathe a little easier.
Emily Johnson
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