SEC Rules Crypto Staking Not a Security in Landmark Decision

SEC Rules Crypto Staking Not a Security in Landmark Decision
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The SEC’s Division of Corporation Finance has declared that crypto staking on proof-of-stake networks does not constitute a securities offering, eliminating the need for registration. This landmark decision provides much-needed regulatory clarity for the crypto industry.

  • SEC's Division of Corporation Finance ruled that crypto staking does not meet the criteria of a securities offering under the Howey test, eliminating registration requirements.
  • The decision covers self-staking, self-custodial staking with third parties, and custodial staking arrangements, emphasizing rewards come from protocol compliance, not managerial efforts.
  • The bipartisan 'CLARITY Act of 2025' was introduced to define regulatory roles for the SEC and CFTC in crypto oversight, aiming to foster innovation and consumer protection.
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