Crypto Staking Doesn’t Violate U.S. Securities Law, SEC Says
The U.S. Securities and Exchange Commission (SEC) issued a significant statement clarifying its stance on crypto staking. The Division of Corporation Finance declared that certain crypto staking activities do not constitute the offer and sale of securities under U.S. law. This means the SEC will not pursue legal action against individuals or companies engaging in these specified activities.
The statement explicitly covers a wide range of staking participants, including node operators, validators, custodians, delegates, nominators, and entities staking assets independently, through third parties, or on behalf of others. This effectively equates staking with mining, a consensus mechanism already deemed outside the scope of securities law by a previous SEC statement.
Lorien Gabel, CEO of Figment, a staking-focused firm, praised the statement’s clarity, highlighting its positive impact on U.S. companies previously hesitant to engage in staking-related services. The statement explicitly includes ancillary services like insurance against slashing penalties and modified unbonding periods, confirming these activities do not automatically classify providers as asset managers. Pooled staking is also explicitly permitted.
Alison Mangiero, head of staking policy at the Crypto Council for Innovation, emphasized the statement’s importance, particularly considering previous SEC enforcement actions targeting staking-as-a-service. She noted that while the outcome was expected following the dismissal of several related cases (including the Coinbase case with prejudice), the official statement provides crucial certainty.
The timing of the statement, just days before the SEC’s deadline on spot ether ETF applications incorporating staking, is noteworthy. While approvals were likely regardless, the statement should expedite the approval process. Both Gabel and Mangiero agree that the statement is a significant step toward clarifying the regulatory landscape for staking.
Importantly, the SEC included a footnote clarifying the statement’s limited scope and lack of legal force. It only addresses activities involving covered crypto assets lacking intrinsic economic properties or rights like passive yield generation or conveying rights to future income or assets. The statement serves as guidance but does not replace formal rulemaking.
