IN THE CRYPTO WORLD: GREEN LIGHT FROM THE SEC FOR STAKING!

#MarketPullback #elg #escoin #xrp

The U.S. Securities and Exchange Commission (SEC) made a historic move in the cryptocurrency market by announcing that staking activities on proof-of-stake (PoS) based blockchain networks are not considered securities. This decision eliminates the requirement for platforms providing staking services and investors to register with the SEC. This development is seen as a significant deviation from the tendency during the tenure of former SEC Chairman Gary Gensler to view staking as an investment contract (CCN.com, 2025).

In a statement from the SEC's Division of Corporate Finance, it was noted that staking activities were examined within the framework of the "Howey Test" and that these activities do not fall under the category of financial instruments, particularly for "collateralized crypto assets" (SEC.gov, 2025). The Howey Test is a four-pronged test used to determine whether a transaction qualifies as a security: an investment of money, a common enterprise, an expectation of profits, and the profits coming from the efforts of others (FindLaw, n.d.). The SEC stated that protocol staking activities are of an administrative or bureaucratic nature, do not involve entrepreneurial or managerial efforts, and therefore do not meet the last element of the Howey Test (Bitcoin.com News, 2025).