SEC Clarifies Staking Rules for Proof-of-Stake Networks
The U.S. Securities and Exchange Commission (SEC) has issued long-awaited guidance on staking activities in Proof-of-Stake (PoS) networks, signaling that certain decentralized staking mechanisms do not qualify as securities offerings under federal law.
The announcement, published by the SEC’s Division of Corporation Finance, confirms that “Protocol Staking”—conducted directly on open, permissionless PoS networks—does not require registration with the agency. The move aims to bring greater legal clarity to a central component of decentralized blockchain operations.
What the SEC Recognizes as Exempt
According to the statement, users who participate in PoS by running nodes or delegating through recognized network protocols are not subject to securities regulations—provided they operate within clearly defined technical and custodial parameters.
In PoS systems, participants stake what the SEC defines as “Covered Crypto Assets” to become Validators. These validators are chosen based on algorithmic rules and are rewarded with newly minted tokens and transaction fees for maintaining network integrity.
Three Staking Methods Outlined
The SEC categorized PoS staking into three recognized models:
- Individual Node Staking – Users operate their own validators while maintaining full control over their assets and private keys.
- Self-Custodial Staking via Third Party – Users delegate staking duties to another node operator, while still retaining ownership and key custody.
- Escrow Staking – Assets are placed in a wallet controlled by a third-party escrow for staking purposes only. These assets cannot be used for lending, speculation, or any non-staking activity, and ownership remains with the user.
Implications for the Industry
This clarification offers relief to decentralized protocols and users who feared that all staking activities might fall under securities rules. It distinguishes protocol-level staking from centralized or pooled staking services that may still face regulatory scrutiny.
The update follows broader efforts by the SEC to refine its stance on crypto assets without stifling innovation in the U.S. blockchain ecosystem.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
