SEC Announces Shift from Gensler-Era Policies on Crypto Staking
In a significant shift for U.S. cryptocurrency policy, the Securities and Exchange Commission (SEC) has clarified on May 29 that most activities associated with proof-of-stake (PoS) blockchains do not fall under the category of securities transactions. This move, outlined in a statement titled "Providing Security is not a 'Security'," signals a departure from the agency's more aggressive stance under former Chair Gary Gensler.
The clarification is expected to alleviate legal uncertainty that has impeded innovation and discouraged American participation in network staking. While not a binding rule, it shows a more accommodating regulatory posture from the current administration. The move could stimulate growth in staking-related infrastructure, which plays an increasingly crucial role in modern blockchain networks.
SEC Commissioner and Division of Corporation Finance member Hester Peirce encapsulated the essence of the SEC's approach by stating that "certain PoS blockchain protocol 'staking' activities are not securities transactions under the federal securities laws." She further explained that staking is a voluntary effort by users to secure a network, but the previous regulatory uncertainty had been discouraging for Americans. This "artificial constraint" hampered decentralization, censorship resistance, and the credible neutrality of PoS-based blockchains.
The statement covers various groups, including individuals who stake assets individually or via a delegated-proof-of-stake platform, as well as staking-as-service providers, both custodial and non-custodial. Additionally, the commission outlined that ancillary services associated with staking are not considered a securities offering.
The statement follows the commission's previous clarification that they do not apply securities offering laws to the mining of cryptocurrency. This, along with the new stance on staking, follows the logic of the commission's other actions and statements made during the post-Gensler era, which began in 2025 when President Donald Trump directed his administration to loosen crypto sector regulation.
Former SEC Chairman Gary Gensler's approach of labeling most cryptocurrencies as unregistered securities, a status that led to legal battles and developmental slowdowns, is conspicuously absent in the new stance. The Crypto Council for Innovation welcomed the change, emphasizing that the new legal status outlines staking as a core part of how modern blockchains operate, not an investment contract.
While some may have been perplexed by the news, the continued growth of the staking ratio across various blockchains suggests that regulators are becoming more open-minded about the cryptocurrency sector. The staking sector is also witnessing innovations aimed at providing stakers with more flexibility or unlocking liquidity while staking.
Though the clarification may not carry the weight of formal legislation, it represents a step forward for deregulating the U.S. crypto landscape, potentially paving the way for future innovation and growth.
- The Securities and Exchange Commission (SEC) has clarified that most activities associated with proof-of-stake (PoS) blockchains, such as staking assets individually or via a delegated-proof-of-stake platform, do not fall under the category of securities transactions.
- Hester Peirce, an SEC Commissioner and Division of Corporation Finance member, explained that certain PoS blockchain protocol staking activities are not securities transactions under the federal securities laws.
- The new stance on staking by the SEC follows the commission's previous clarification that they do not apply securities offering laws to the mining of cryptocurrencies.
- The continued growth of the staking ratio across various blockchains suggests that regulators are becoming more open-minded about the cryptocurrency sector.
- The Crypto Council for Innovation welcomed the change, emphasizing that the new legal status outlines staking as a core part of how modern blockchains operate, not an investment contract.
- While not a binding rule, the move could stimulate growth in staking-related infrastructure, which plays an increasingly crucial role in modern blockchain networks.
- The Securities and Exchange Commission's (SEC) approach in the post-Gensler era, which began in 2025, has been more accommodating, potentially paving the way for future innovation and growth in the crypto finance and technology sector.
