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Regulatory shift signaled in SEC declaration, deviating from Gensler's tenure on cryptocurrency staking.

Crypto sector scores significant victory as SEC confirms that staking, alongside Bitcoin and stablecoins, in 2025, is not considered as a securities offering.

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In the year 2025, the conversation revolves around Bitcoin and stablecoins, with the crypto sector...
In the year 2025, the conversation revolves around Bitcoin and stablecoins, with the crypto sector scoring a significant victory thanks to the SEC's decision classifying staking as not equivalent to a securities offering.

Regulatory shift signaled in SEC declaration, deviating from Gensler's tenure on cryptocurrency staking.

In a game-changing move for U.S. crypto regulations, the Securities and Exchange Commission (SEC) made a significant shift on May 29, 2023, stating that most staking activities on Proof-of-Stake (PoS) blockchains don't constitute securities transactions. This statement marks a stark contrast to the SEC's previous, more aggressive stance under former chairman Gary Gensler.

The SEC's announcement, titled "Staking isn't a 'Security'," provides much-needed clarity on an issue that had been causing uncertainty and stifling innovation in the crypto space. While it is not a binding rule, it signals a friendlier regulatory posture from the current administration. This shift could lead to substantial growth in staking-related infrastructure, which plays a crucial role in the operation and decentralization of modern blockchain networks.

Commissioner Hester Peirce, from the Division of Corporation Finance, explained the SEC's approach by stating, "certain proof-of-stake blockchain protocol 'staking' activities are not securities transactions within the scope of the federal securities laws."

According to the SEC, this statement applies to various groups, including individual stakers, those who stake assets via delegated-proof-of-stake platforms, and staking-as-service providers, both custodial and non-custodial. Additionally, the commission outlined that ancillary services associated with staking, such as slashing coverage that protects staked crypto assets, do not fall under the umbrella of securities offerings.

It's worth noting that this guidance follows the SEC's earlier clarification stating that the mining of cryptocurrency is not subject to securities offering laws. This jump in understanding is in line with the SEC's other actions and statements in the post-Gensler era, which began in 2025 when President Trump directed his administration to ease crypto sector regulations.

One of the first organizations to highlight the importance of this change was the Crypto Council for Innovation. In a series of posts, they emphasized that staking is now recognized as a core part of how modern blockchains operate, rather than an investment contract.

As U.S. regulators become more open-minded toward the crypto sector, the SEC's clarification could be a stepping stone for future innovation. The growing staking sector is already undergoing several innovations aimed at providing more flexibility and liquidity to stakers, making staking less demanding and more accessible.

Despite the lack of immediate impact on token prices or mainstream attention, the SEC's clarification sets an essential foundation for future innovation. As staking continues to evolve, the ability of U.S.-based users, developers, and service providers to participate without fear of legal ambiguity could trigger a new wave of decentralization and growth in the crypto space.

So, the stakes have indeed changed for the better.

  1. The Securities and Exchange Commission (SEC) declared that most staking activities on Proof-of-Stake (PoS) blockchains are not considered securities transactions.
  2. The SEC's statement on May 29, 2023, provides clarity on an issue that had been causing uncertainty, especially in Bitcoin and Ethereum staking.
  3. Commissioner Hester Peirce explained the SEC's approach, stating that certain proof-of-stake blockchain protocol 'staking' activities are not securities transactions within the scope of federal securities laws.
  4. This guidance applies to individual stakers, those who stake assets via delegated-proof-of-stake platforms, and staking-as-service providers, both custodial and non-custodial.
  5. The growing staking sector is undergoing innovations aimed at providing more flexibility and liquidity to stakers, making staking less demanding and more accessible.
  6. The SEC's clarification sets an essential foundation for future innovation in the crypto sector, including decentralized exchanges (DEX) on blockchains like Solana or Polkadot.
  7. This friendly regulatory posture from the current administration could encourage investing in new technologies like Polkadot or Solana, contributing to the advancement of the global crypto finance landscape.

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