The US Securities and Exchange Commission’s (SEC) new guidance on cryptocurrency staking is widely seen as a major win for the crypto industry and the push toward globally consistent digital asset regulation.
In a May 29 statement, the SEC’s Division of Corporation Finance said “Protocol Staking Activities” such as cryptocurrencies staked in a proof-of-stake blockchain “don’t need to register with the Commission transactions under the Securities Act.”
The agency’s new guidance marks a “major step forward” for the US cryptocurrency industry, said Alison Mangiero, head of staking policy at the Crypto Council for Innovation.
“The SEC has now recognized what we’ve long argued: Staking is a core part of how modern blockchains operate, not an investment contract,” she told Cointelegraph.
“That clarity is critical.”
Crypto industry watchers have long advocated for clearer guidelines on staking.
In April, the CCI’s Proof of Stake Alliance project led a coalition of almost 30 organizations to submit a detailed letter to the SEC’s Crypto Task Force, outlining that a non-custodial or custodial staking service provider is “distinct from investment contracts.”
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“The SEC has opened the door to more sensible regulation,” said Mangiero, adding that this is a “win for stakers and the broader crypto community.”
However, industry participants are still waiting for the approval of the first Ether (ETH) staking ETFs. On May 21, the SEC delayed its decision on Bitwise’s application to add staking to its Ether ETF, along with its decision on Grayscale’s XRP (XRP) ETF.
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SEC guidance marks “notable shift”
The SEC’s new guidance marks a “notable shift from previous enforcement-heavy approaches,” said Marcin Kazmierczak, co-founder and chief operations officer at blockchain oracle firm RedStone.
“This represents genuine progress toward regulatory clarity, but it’s evolutionary rather than revolutionary,” he told Cointelegraph.
“The foundation is being laid for more comprehensive crypto regulation, with staking ETF approval becoming increasingly plausible by late 2025,” Kazmierczak added.
The establishment of the SEC’s dedicated Crypto Task Force on Jan. 21 marked another step away from the previous enforcement-heavy regime. The task force, headed by Commissioner Hester Peirce, is preparing to release its first report on regulations during the “next few months,” SEC Chair Paul Atkins said in a May 20 hearing.
The new guidance comes after years of efforts by CCI’s Proof of Stake Alliance, which has been educating policymakers about the importance of cryptocurrency staking.
“We’ve consistently argued that protocol staking is not an investment activity — it’s a core function of how modern blockchains operate,” said Mangiero, adding that the new SEC guidance is a meaningful progress toward “recognizing that distinction.”
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