🔍What Does the #SEC 's Decision Mean?
The U.S. Securities and Exchange Commission (SEC) has announced that staking rules on cryptocurrency networks that use proof-of-stake (PoS) transactions are no longer considered "security."
What does this mean, in simple terms?
It means that the person who makes these transactions or is registered does not need to register with the SEC.
It means that these markets will no longer be subject to strict rules such as stock exchange transactions under SEC supervision.
This means that it will provide great relief for both individual users (Ethereum staking) and platforms that provide staking services (like Coinbase).
💡 What is #staking , Why Was It Debated?
Staking is a system that helps facilitate the network by "locking" the cryptocurrencies in users' hands for a period of time on PoS blockchains. In return, users receive rewards.
Why did the SEC consider this a security before?
Because the staking process:
Users want to “earn profit” for depositing money.
This transaction is usually done through a platform (an exchange).
The SEC likened this situation to traditional investment vehicles and said that “it may have a security.”
Now, the SEC has decided that this transaction should not always be globalized.
⚖️ “Howey Test” and SEC’s Comment
The SEC uses a four-item test called the Howey Test to determine whether any activity has value:
Is there an investment of money?
Is it a joint venture?
Does it have a profit?
Is this profit based on individual effort?
The SEC said that PoS staking does not always meet these criteria and therefore cannot automatically be counted as a security amount.
📈 What Does It Mean for the Crypto Sector?
1. Fewer Legal Obstacles:
Crypto investors and platforms offering staking services will now face fewer legal risks. More companies can offer staking services once they register with the SEC.
2. ETFs Open the Way:
With the SEC's purchase decision, crypto-based investment funds (ETFs) can now issue products that include staking. This means products that offer both crypto earnings and staking rewards to the monetary exchange.
3. Investor Confidence May Increase:
Clearer rules create a safer environment for isolation. This may increase interest in the crypto market.
⚠️ There is Criticism
Some names within the SEC (such as Caroline Crenshaw) argue that this decision:
Does not protect investors as much as necessary,
Can lead to uncertainty in the market,
Especially small sizes can be abused by malicious staking platforms.
So, although the decision seems positive, there is no environment that everyone agrees on yet.
🔚 Conclusion: Why It Matters
This decision could be a turning point for the crypto sector:
In a major economy like the US, staking activities are now becoming more comfortable and legal.