SEC Approves Crypto Staking as Non-Security Activity in Groundbreaking Ruling

The SEC's Division of Corporation Finance has declared that crypto staking activities are not securities offerings under federal laws, thus no registration is necessary. This ruling applies to three main types of staking arrangements: self staking, self-custodial staking with third parties, and custodial arrangements where third parties stake crypto assets on behalf of the owners.

The Division used the Howey test, determining that protocol staking did not meet the "investment contract" criteria, as rewards come from administrative activities rather than managerial decisions. Furthermore, staking activities are viewed as service provisions rather than investments in profit-generating enterprises.

On the same day, US lawmakers introduced the "Digital Asset Market Clarity Act of 2025", a bipartisan regulatory framework for crypto assets aiming to clarify the roles of the SEC and the Commodity Futures Trading Commission (CFTC) in crypto regulations.