Regulatory uncertainty around staking had kept many Americans from participating in a key blockchain security mechanism due to fears of violating securities laws.
The SEC’s Division of Corporation Finance released the statement on Thursday, easing regulatory fears that had discouraged participation in staking networks.
According to the SEC staff, bundling additional features, such as slashing protection, early withdrawal options, alternative reward structures or asset aggregation — also does not convert the activity into a regulated securities offering.
The new statement confirms that individuals who self-stake eligible crypto assets and companies offering non-custodial or custodial staking-as-a-service are not engaging in securities transactions, as long as the activity centers around network consensus.
The letter, signed by more than 30 crypto organizations, asked the agency to recognize staking as a “technical process” rather than an “investment activity.” It also called for clear guidelines, warning that overly strict rules could freeze market structures and stifle innovation in the staking space.
The clarification comes as pressure from the crypto industry continues to build. In April, the Crypto Council for Innovation, a public policy group, sent a letter to the SEC urging it to deregulate staking.
The SEC’s stance follows its earlier position on proof-of-work mining. In that case, the agency also found the activity did not amount to a securities transaction.
Commissioner Hester Peirce, a long-standing advocate for clearer crypto regulation, welcomed the update. She said the lack of clarity had “artificially constrained participation” in proof-of-stake networks. As a result, it had weakened decentralization and reduced the broader utility of blockchain systems in the US.