SEC Commissioner Peirce: "Staking is Not a Security"... Will the US Financial Sector Open Up?

Minseung Kang

Summary

SEC Commissioner Hester Peirce announced that staking is not subject to securities law, sending an important signal to investors.
Commissioner Peirce emphasized the need for issuing clear guidelines and establishing initial project registration pathways.
This announcement is interpreted as laying a policy foundation for institutions in the United States to actively engage in technology-based non-custodial staking.

Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC) and head of the cryptocurrency task force, has officially stated that staking is not subject to securities law.

According to cryptocurrency media Pigment on the 23rd, Commissioner Peirce said in the SEC's official speech 'New Paradigm' on the 19th, "Technical participation in Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) systems does not fall under securities law." This is the first time a senior SEC official has directly stated their position on staking.

On this day, Commissioner Peirce emphasized her support for issuing additional guidelines to clarify that participating directly in staking or providing related services is not subject to securities law.

Commissioner Peirce also pointed out that the SEC's existing 'regulation through enforcement' approach has only caused market confusion. She further emphasized the need for clearer guidelines, safe harbor provisions, and the establishment of initial project registration pathways.

Peirce reiterated that "most cryptocurrencies do not have a promise of profit by a centralized issuer and cannot be considered securities."

The media added, "This speech is interpreted as formalizing a policy foundation that allows institutions in the United States to more actively engage in technology-based non-custodial staking."