In a surprising and milestone move, the U.S. Securities and Exchange Commission (SEC) has just confirmed that staking is not considered a securities transaction – opening up a positive legal future for crypto projects and investors in the U.S.


Staking is not a security – if it does not promise passive returns

The new statement issued by the SEC's Corporate Finance Division affirms that staking activities on Proof-of-Stake networks (#Pos ) – even when conducted through third parties – do not constitute an investment contract, as long as the assets do not provide benefits such as dividends or profit sharing.


The specific scope of application includes:




Self-staking: users directly participate in network validation.




Self-custody staking: assets are still controlled by the user but use a supporting platform.




Third-party custodial staking: the service provider stakes on behalf of the owner.




#SEC evaluates based on the Howey Test – a legal tool to determine whether a transaction qualifies as a security. Conclusion: the above forms of staking do not meet the “investment contract” criterion, so they are not classified as securities.


Positive signals after a tightening phase

This move is seen as a clear turnaround from the era of former SEC Chairman Gary Gensler. During his tenure, many staking services like Kraken, Coinbase, or MetaMask were forced to cease operations in the U.S. for being viewed as 'selling disguised securities'.


However, starting from the beginning of 2025, the SEC began to loosen its stance, notably stating that coin mining under the Proof-of-Work mechanism is also not considered a securities transaction as of last March.


SEC Commissioner Hester Peirce strongly supports the new perspective, calling it a welcome step forward, especially for providers of 'staking-as-a-service'.


Potential impact on financial products and the crypto market

According to Rebecca Rettig, Legal Director of Jito Labs, the SEC's statement will pave the way for crypto ETF products that integrate staking, meaning increased diversity and legitimization of staking-based financial products – which were previously hindered by legal barriers.


However, not everyone at the SEC agrees. Commissioner Caroline Crenshaw criticized the new statement as 'short-sighted', which could expose investors to risks from fraud, price volatility, and technical vulnerabilities if lacking strict oversight.


Connection to the crypto market

The new statement from the SEC could positively impact the entire crypto ecosystem, especially PoS networks like Ethereum, Solana, or Cosmos. Removing legal barriers for staking will help projects access the U.S. market more easily, while also creating incentives for institutional capital through legal and transparent staking products.



Risk warning: Crypto is a highly volatile market, containing many legal and technical risks. Investors should exercise caution and should not view this as investment advice. #anhbacong