The U.S. Securities and Exchange Commission (SEC) has issued new guidance on cryptocurrency staking, widely seen as a significant victory for the crypto industry and a push towards consistency in global digital asset regulation.
The SEC's Division of Corporation Finance stated in a May 29 announcement that "protocol staking activities," such as staking cryptocurrencies on proof-of-stake blockchains, "do not require registration with the Commission under the Securities Act."
Alison Mangiero, head of staking policy at the Crypto Council for Innovation, stated that the agency's new guidance marks a "significant advancement" for the U.S. cryptocurrency industry.
"The SEC now recognizes our long-held argument: staking is a core part of modern blockchain operations, not an investment contract," she told Cointelegraph.
"This clarity is crucial."
Observers in the crypto industry have long advocated for clearer staking guidelines.
In April, the CCI's proof-of-stake alliance led a coalition of nearly 30 organizations that submitted a detailed letter to the SEC's crypto working group, outlining how non-custodial or custodial staking service providers "differ from investment contracts."
Mangiero said, "The SEC has opened the door for more rational regulation," adding that this is a "victory for stakers and the broader crypto community."
However, industry participants are still waiting for the approval of the first Ethereum (ETH) staking ETF. On May 21, the SEC delayed its decision on Bitwise's application to add staking features to its Ethereum ETF, while also postponing its decision on the Grayscale XRP ETF.
Marcin Kazmierczak, co-founder and COO of blockchain oracle company RedStone, stated that the SEC's new guidance marks a "significant shift from the previous enforcement-led approach."
"This represents a real advancement in regulatory clarity, but it is incremental rather than revolutionary," he told Cointelegraph.
Kazmierczak added, "A foundation is being laid for more comprehensive crypto regulation, making the approval of staking ETFs increasingly likely by the end of 2025."
The SEC's establishment of a dedicated crypto working group on January 21 marked another shift from the previous enforcement-led regime. The group, led by Commissioner Hester Peirce, is preparing to release its first regulatory report in the "coming months," SEC Chairman Paul Atkins stated during a hearing on May 20.
The new guidance comes after years of efforts by the CCI's proof-of-stake alliance, which has been educating policymakers on the importance of cryptocurrency staking.
Mangiero said, "We have always maintained that protocol staking is not an investment activity—it is a core function of modern blockchain operations," adding that the new SEC guidance is a meaningful advancement in "recognizing this distinction."
Related: U.S. Securities and Exchange Commission (SEC) criticized for shift in cryptocurrency staking policy
Original article: “Crypto Council: SEC’s Crypto Staking Guidance is a ‘Significant Advancement’ for the U.S.”
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