Crypto staking on proof-of-stake blockchains not a security: SEC staff (Cointelegraph)

The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance staff have given new guidance on “Protocol Staking Activities” such as crypto-assets staked in proof-of-stake blockchains. According to the new guidance, such activities don’t need to register with the SEC, or fall within one of the Securities Act’s exemptions from registration. It added that staking rewards are compensation for a service provided by node operators, not profits earned from “others’ entrepreneurial or managerial efforts,” and do not fall under securities regulation. Custodial staking also can’t be classified as a securities offering as custodians don’t have a direct role in deciding how much is staked and only act as “agents in connection with staking,” according to the division’s staffers. [Read more at the SEC]

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