{"id":29537,"date":"2025-05-30T20:03:21","date_gmt":"2025-05-30T20:03:21","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=29537"},"modified":"2025-05-30T20:03:21","modified_gmt":"2025-05-30T20:03:21","slug":"sec-endorses-crypto-staking-as-non-security-activity-in-landmark-guidance","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=29537","title":{"rendered":"SEC Endorses Crypto Staking as Non-Security Activity in Landmark Guidance"},"content":{"rendered":"<div>\n<p>On May 29, the SEC\u2019s Division of Corporation Finance provided its views on staking on networks that use proof-of-stake as a consensus mechanism.<\/p>\n<p>The Division <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/statement-certain-protocol-staking-activities-052925\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">concluded<\/a> that protocol <a href=\"https:\/\/cryptopotato.com\/sec-staking-crackdown-could-be-positive-for-decentralized-ethereum-analyst\/\" data-wpel-link=\"internal\">staking activities<\/a> do not constitute securities offerings under federal securities laws and no registration is required.<\/p>\n<blockquote>\n<p>\u201cAccordingly, it is the Division\u2019s view that participants in Protocol Staking Activities do not need to register with the Commission transactions under the Securities Act, or fall within one of the Securities Act\u2019s exemptions from registration in connection with these Protocol Staking Activities.\u201d<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">CRYPTO IS WINNING.<\/p>\n<p>The SEC just said that crypto staking on PoS networks does not involve securities.<\/p>\n<p>This is huge! <a href=\"https:\/\/t.co\/bfaNc7hQ0w\" data-wpel-link=\"external\" target=\"_blank\">pic.twitter.com\/bfaNc7hQ0w<\/a><\/p>\n<p>\u2014 Kyle Chass\u00e9 \/ DD (@kyle_chasse) <a href=\"https:\/\/twitter.com\/kyle_chasse\/status\/1928262342472536362?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">May 30, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Staking is Not Securities Related<\/h2>\n<p>The statement addressed three main types of staking arrangements: self (solo) staking, where node operators stake their own crypto assets using their own resources, self-custodial staking with third parties where asset owners grant validation rights to third-party node operators while retaining ownership and control, and custodial arrangements where third-party custodians hold and stake crypto assets on behalf of owners.<\/p>\n<p>The Division applied the Howey test and concluded that protocol staking fails to meet the \u201cinvestment contract\u201d criteria.\u00a0This was due to there being no reliance on the entrepreneurial efforts of others since staking rewards come from administrative and ministerial activities, not managerial decisions.<\/p>\n<p>Additionally, there is no common enterprise based on others\u2019 efforts, as participants earn rewards through their own protocol compliance, not from third parties\u2019 business success.\u00a0Finally, it stated that staking activities are essentially service provision rather than investment in a profit-generating enterprise.<\/p>\n<p>CoinFund President Christopher Perkins thanked the SEC for what the industry has asked for all along \u2013 clarity.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Thank you to the <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">@SECGov<\/a> and the Crypto Task Force for what should have been table stakes all along\u2014a little thing called CLARITY. <a href=\"https:\/\/t.co\/1JVeejt37n\" data-wpel-link=\"external\" target=\"_blank\">pic.twitter.com\/1JVeejt37n<\/a><\/p>\n<p>\u2014 Christopher Perkins <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/72x72\/2693.png\" alt=\"\u2693\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\">NYC (@perkinscr97) <a href=\"https:\/\/twitter.com\/perkinscr97\/status\/1928222544349241377?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">May 29, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>ETF Store President Nate Geraci also celebrated the good news, <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/statement-certain-protocol-staking-activities-052925\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">stating<\/a> that it was \u201cAnother hurdle cleared for <a href=\"https:\/\/cryptopotato.com\/sec-delays-decision-on-staking-in-spot-ethereum-etfs\/\" data-wpel-link=\"internal\">staking<\/a> in spot Ether ETFs.\u201d<\/p>\n<h2>CLARIY Bill Introduced<\/h2>\n<p>In related news, on May 29, US lawmakers <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/statement-certain-protocol-staking-activities-052925\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"external\">introduced<\/a> a bipartisan <a href=\"https:\/\/cryptopotato.com\/tom-emmer-reintroduces-regulatory-clarity-for-crypto-tech-bill\/\" data-wpel-link=\"internal\">regulatory framework<\/a> for crypto assets called the \u201cDigital Asset Market Clarity Act of 2025\u201d or \u201cCLARITY Act of 2025.\u201d<\/p>\n<p>The Clarity Act addresses the roles of the SEC and the Commodity Futures Trading Commission (CFTC) on crypto regulations in an effort to determine which agency will have oversight.<\/p>\n<p>House Committee on Financial Services Chairman French Hill, who introduced the bill, said, \u201cOur bill brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation.\u201d<\/p>\n<p>\u201cAmerica should be the global leader in the digital assets marketplace \u2013 but we can\u2019t do that without establishing a clear regulatory framework,\u201d added bill sponsor Dusty Johnson.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">NEW: Chairman <a href=\"https:\/\/twitter.com\/RepFrenchHill?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">@RepFrenchHill<\/a> today introduced the CLARITY Act, a bipartisan bill which would establish a regulatory framework for digital assets in the US.<\/p>\n<p>Read more<img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/72x72\/2b07.png\" alt=\"\u2b07\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><a href=\"https:\/\/t.co\/fV7N7aXAdb\" data-wpel-link=\"external\" target=\"_blank\">https:\/\/t.co\/fV7N7aXAdb<\/a> <a href=\"https:\/\/t.co\/5ZIpFTcDDD\" data-wpel-link=\"external\" target=\"_blank\">pic.twitter.com\/5ZIpFTcDDD<\/a><\/p>\n<p>\u2014 Financial Services GOP (@FinancialCmte) <a href=\"https:\/\/twitter.com\/FinancialCmte\/status\/1928136622681346526?ref_src=twsrc%5Etfw\" data-wpel-link=\"external\" target=\"_blank\">May 29, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The post <a href=\"https:\/\/cryptopotato.com\/sec-endorses-crypto-staking-as-non-security-activity-in-landmark-guidance\/\" rel=\"nofollow\">SEC Endorses Crypto Staking as Non-Security Activity in Landmark Guidance<\/a> appeared first on <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>On May 29, the SEC\u2019s Division of Corporation Finance provided its views on staking on networks that use proof-of-stake as a consensus mechanism. The Division concluded that protocol staking activities do not constitute securities offerings under federal securities laws and no registration is required. \u201cAccordingly, it is the Division\u2019s view that participants in Protocol Staking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-29537","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29537"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/29537\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}