SEC Declares Protocol Staking Non-Security

SEC Clarifies Protocol Staking on PoS Networks Not a Securities Offering

• The SEC stated that protocol staking on proof-of-stake (PoS) networks is not considered a securities offering.
• Participants in staking activities do not need to register transactions under the Securities Act.
• Guidance covers self-staking, self-custodial staking, and custodial arrangements.
• Staking rewards are classified as payments for services, not profits from others’ efforts.
• Ancillary services like slashing coverage and early unbonding are deemed administrative or ministerial.

The SEC clarified that protocol staking activities on PoS networks are not securities offerings, exempting participants from registration requirements under the Securities Act. Staking rewards are seen as service payments rather than profits from others’ efforts.