$ADA Staking Is Not a Security, Declares Cardano Founder
Cardano founder Charles Hoskinson has publicly affirmed that ADA staking is not a security, in response to new guidance from the SECโs Division of Corporation Finance on liquid staking.
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Whatโs the SEC Saying?
The SEC defines liquid staking as delegating crypto via a service or protocol and receiving a "receipt" that represents staked assets + expected returns.
But here's the catch _ that doesnโt apply to Cardanoโs native staking model.
๐ต Why ADA Staking Stands Apart
Cardano uses a built-in staking system at the protocol level _ no intermediaries, no custodians. According to Hoskinson:
โADA staking does not satisfy the Howey Test criteria.โ
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Key Points:
No โinvestment of moneyโ in a third-party enterprise
No expectation of profit solely from othersโ efforts
Delegators secure the network, not speculate
Staking rewards are generated by protocol rules, not profit-sharing
โ๏ธSECโs Project Crypto โ Already Delivering
This guidance came under the SECโs new initiative โ Project Crypto, designed to bring U.S. financial markets on-chain with modernized rules.
๐ค SEC Chairman Paul Atkins stated:
โClearer rules are already being delivered. Liquid staking was step one.โ
๐๏ธWhat This Means for ADA Holders
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No security classification = less regulatory risk
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ADA staking remains decentralized & accessible
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Reinforces Cardanoโs long-standing commitment to transparency and compliance
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