The U.S. Securities and Exchange Commission’s Division of Corporation Finance announced Thursday that certain blockchain staking activities do not involve the offering of securities.
“Accordingly, it is the Division’s view that participants in Protocol Staking Activities do not need to register with the Commission transactions under the Securities Act,” the statement said.
The division said its view applies to staking of “covered crypto assets” on proof-of-stake networks, activities of third-party service providers such as custodians and node operators, and ancillary services.
Specifically, “ancillary” services encompass self staking, self-custodial staking with a third party, and custodial arrangements where custodians stake on behalf of asset owners.
The SEC division added that covered crypto assets do not constitute financial instruments under the definition of securities, and the latest view on staking activities came as a result of evaluation using the Howey Test.
“Today’s statement provides welcome clarity for stakers and ‘staking-as-a-service’ providers in the United States,” SEC Commissioner Hester Peirce said in a statement, adding that “providing security is not a ‘security.'”
Rebecca Rettig, the chief legal officer at Jito Labs, indicated on social media platform X that the SEC’s conclusion clears the path for crypto exchange-traded funds to include staking in their products.
Since the departure of former Chair Gary Gensler, the SEC has been making efforts to offer more clarity to crypto regulation. In March, the SEC clarified that proof-of-work mining activities are not considered securities activities.
During Gensler’s term, the SEC had taken issue with staking services from Kraken, Coinbase and MetaMask.
Meanwhile, Democrat SEC Commissioner Caroline Crenshaw criticized the latest statement from the Division of Corporate Finance, saying that it paints an “incomplete picture” of the law around crypto, minimizing “significant” risks the products pose to investors.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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