In a move that could reshape the U.S. crypto landscape, the Securities and Exchange Commission (SEC) has clarified that most staking activities on proof-of-stake (PoS) blockchains are not considered securities transactions. This marks a significant shift from the stricter approach seen under former Chair Gary Gensler and signals a more open attitude toward blockchain innovation in the United States .
What Did the SEC Say?
On May 29, 2025, the SEC’s Division of Corporation Finance released a statement explaining that protocol staking—where users lock up their crypto to help secure PoS networks—does not fall under federal securities laws for most cases. This applies to individuals staking on their own, through delegated platforms, or using staking-as-a-service providers, whether custodial or non-custodial .
The SEC also clarified that related services, like slashing coverage (which protects stakers from penalties), are not considered securities offerings. This brings staking in line with how the SEC already treats crypto mining, further reducing regulatory uncertainty for participants .
Why Is This a Big Deal?
For years, the lack of clear rules around staking made U.S. companies and individuals hesitant to participate, fearing legal trouble. The new guidance removes much of that uncertainty, making it easier for Americans to get involved in staking and for businesses to offer related services .
Industry leaders, like the Crypto Council for Innovation, have praised the move, noting that the SEC now recognizes staking as a fundamental part of how modern blockchains operate—not as an investment contract. This clarity is expected to encourage more innovation and growth in the U.S. crypto sector .
What’s Next for Staking and Crypto in the U.S.?
While the SEC’s statement isn’t a binding rule, it sets a clear direction for future regulation. It could pave the way for new products, such as staked Ether ETFs, and make the U.S. a more attractive place for blockchain development .
Despite the positive news, the market reaction has been muted. In 2025, much of the crypto conversation has focused on Bitcoin and stablecoins, with PoS platforms like Ethereum seeing less attention. However, staking activity continues to grow, with Ethereum’s staking ratio reaching 28% by the end of 2024, and other networks like Solana and Cosmos surpassing 50% .
Innovations in staking are also making it more flexible and accessible, allowing users to unlock liquidity and avoid long lock-up periods. This evolution, combined with regulatory clarity, could drive a new wave of participation and decentralization in the U.S. crypto ecosystem .
Bottom Line
The SEC’s updated stance on staking is a win for the crypto industry, providing much-needed clarity and opening the door for further innovation. As staking becomes more central to blockchain infrastructure, U.S. users and companies can now participate with greater confidence and less legal risk.
