SEC Confirms Staking on Proof-of-Stake Blockchains Is Not a Securities Transaction

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The US Securities and Exchange Commission (SEC) has determined that staking on certain proof-of-stake (PoS) blockchains does not qualify as a securities transaction under federal law—a decision that provides much-needed regulatory clarity for crypto investors and service providers.

In a statement issued Thursday by its Division of Corporation Finance, the SEC alleviated longstanding concerns that staking could be treated as an unregistered securities offering. The move is expected to encourage broader participation in staking networks, which had operated in a legal gray area.

Staking involves locking up cryptocurrency to support blockchain transaction validation in exchange for rewards. While the practice has grown in popularity, the industry has been uncertain whether offering or engaging in staking services might trigger securities regulations.

The SEC’s guidance clarifies that both individual self-stakers and companies providing staking-as-a-service (whether custodial or non-custodial) are not conducting securities transactions, provided the activity remains focused on network consensus.