The new guidelines from the SEC reshape the rules for cryptocurrency staking, easing the barriers to participating in PoS, legitimizing core services, and opening up strong incentives for the expansion of decentralized blockchain.
SEC Commissioner Supports New Staking Perspective: Joining PoS Becomes Easier
U.S. Securities and Exchange Commission Commissioner (SEC) Hester Peirce issued a statement on May 29 in support of new guidance from the agency's Corporate Finance Division, which clarifies that some cryptocurrency staking activities are not considered securities trading under federal law. The statement, described by Peirce as a welcome move, aims to remove the ambiguity that has discouraged participation in (PoS) proof-of-stake blockchain networks.
Please note that the lack of clear management positioning in the past has caused negative impacts: "This has artificially limited participation in network consensus and weakened the decentralization, censorship resistance, and reliable neutrality of proof-of-stake blockchains."
Commissioner Peirce explained:
The statement of the Department applies to individuals who self-stake a certain amount of cryptocurrency assets insured on the proof-of-stake network or authorized proof of stake. This statement also applies to custodial and non-custodial staking service providers facilitating this type of staking on behalf of others.
"In addition, the statement explains that pairing certain ancillary services with non-custodial or custodial staking services, in the staff's view, does not transform the provision of staking services into a securities service," the SEC commissioner continued. "These ancillary services include providing a reduced coverage range, allowing the return of cryptocurrency assets to stakers before the end of the protocol's 'unbonding' period, distributing earned rewards based on an alternative rewards payment schedule and according to the alternative amounts, and aggregating the cryptocurrency assets of stakers together for the purpose of meeting the minimum staking requirements of the network."
The statement from the Corporate Finance Division is based on previous interpretations related to proof of work mining (PoW), promoting the SEC's increasingly developed interpretation of blockchain-related activities. Peirce expressed hope that both the Division and the SEC's Cryptocurrency Task Force will continue to refine their views.
This announcement has received cautious optimism across the cryptocurrency ecosystem. Voices in the industry supporting decentralization argue that this guidance may alleviate fears about legal consequences and expand legitimate participation in consensus protocols. Others remain skeptical, noting that while clarification is a step forward, more comprehensive legislation is still needed to ensure consistent handling of blockchain-based services.
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SEC Commissioner Analyzes Staking—Who is Safe, What is Protected
The new guidelines from the SEC reshape the rules for cryptocurrency staking, easing the barriers to participating in PoS, legitimizing core services, and opening up strong incentives for the expansion of decentralized blockchain. SEC Commissioner Supports New Staking Perspective: Joining PoS Becomes Easier U.S. Securities and Exchange Commission Commissioner (SEC) Hester Peirce issued a statement on May 29 in support of new guidance from the agency's Corporate Finance Division, which clarifies that some cryptocurrency staking activities are not considered securities trading under federal law. The statement, described by Peirce as a welcome move, aims to remove the ambiguity that has discouraged participation in (PoS) proof-of-stake blockchain networks. Please note that the lack of clear management positioning in the past has caused negative impacts: "This has artificially limited participation in network consensus and weakened the decentralization, censorship resistance, and reliable neutrality of proof-of-stake blockchains." Commissioner Peirce explained: The statement of the Department applies to individuals who self-stake a certain amount of cryptocurrency assets insured on the proof-of-stake network or authorized proof of stake. This statement also applies to custodial and non-custodial staking service providers facilitating this type of staking on behalf of others. "In addition, the statement explains that pairing certain ancillary services with non-custodial or custodial staking services, in the staff's view, does not transform the provision of staking services into a securities service," the SEC commissioner continued. "These ancillary services include providing a reduced coverage range, allowing the return of cryptocurrency assets to stakers before the end of the protocol's 'unbonding' period, distributing earned rewards based on an alternative rewards payment schedule and according to the alternative amounts, and aggregating the cryptocurrency assets of stakers together for the purpose of meeting the minimum staking requirements of the network." The statement from the Corporate Finance Division is based on previous interpretations related to proof of work mining (PoW), promoting the SEC's increasingly developed interpretation of blockchain-related activities. Peirce expressed hope that both the Division and the SEC's Cryptocurrency Task Force will continue to refine their views.
This announcement has received cautious optimism across the cryptocurrency ecosystem. Voices in the industry supporting decentralization argue that this guidance may alleviate fears about legal consequences and expand legitimate participation in consensus protocols. Others remain skeptical, noting that while clarification is a step forward, more comprehensive legislation is still needed to ensure consistent handling of blockchain-based services.