US Securities Law Does Not Apply to Crypto Staking, According to SEC

In a recent statement, a division of the US Securities and Exchange Commission has indicated that crypto staking, under certain conditions, does not appear to violate US securities law. This clarification was provided by the SEC's Division of Corporation Finance, which published a staff statement outlining how the regulator may assess proof-of-stake networks. The statement notes that certain activities, such as node operation, validation, and staking, do not constitute the offer and sale of securities, and therefore, the SEC will not take action against individuals or companies engaging in these activities. The statement suggests that staking will be treated similarly to mining, which was also deemed not to implicate securities laws in a previous staff statement. The SEC's clarification has been welcomed by industry experts, who believe it will provide greater certainty and encourage US companies to participate in staking activities. The statement, however, is non-binding and has no legal force or effect, but it is seen as an important update from the regulator, particularly in light of upcoming deadlines for applications to bring staking into spot ether exchange-traded funds.