US SEC: 'Protocol staking is not a security'—Reflects industry demand

The U.S. Securities and Exchange Commission (SEC) has stated that certain staking activities are 'not considered securities.'

On the 29th (local time), the SEC’s Division of Corporation Finance announced in a statement, "We believe that protocol staking activities do not involve the offering or sale of securities under the Securities Act and the Exchange Act." This means protocol staking activities are effectively not regarded as securities. The SEC also commented, "Participants in protocol staking activities do not need to register transactions with the SEC as securities, nor do such activities qualify for one of the securities law registration exemptions."

The clarification of the regulatory position on protocol staking is something the cryptocurrency industry has continuously advocated for. Previously, the U.S. Blockchain Association conveyed this view to the SEC’s cryptocurrency task force (TF) in February. At that time, the Blockchain Association requested the SEC to "provide clear guidance so that protocol staking would not be classified as a security."