SEC says proof-of-stake staking activities do not constitute securities transactions

Description

The SEC’s Division of Corporation Finance declared that proof-of-stake staking activities do not constitute securities transactions, signaling regulatory clarity and paving the way for ETF products to include staking.

Authors

Danny Park

Publish date

May 29, 2025

Publisher

The Block

Web URL

https://www.theblock.co/post/356312/sec-says-proof-of-stake-staking-activities-do-not-constitute-securities-transactions

Referenced by

Rebecca Rettig, the chief legal officer at Jito Labs, indicated on social media platform X that the SEC's conclusion clears the path for crypto exchange-traded funds to include staking in their products.

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"Accordingly, it is the Division's view that participants in Protocol Staking Activities do not need to register with the Commission transactions under the Securities Act," the statement said.

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During Gensler's term, the SEC had taken issue with staking services from Kraken, Coinbase and MetaMask.

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