SEC Clarifies Staking Isn't Securities 💼
The U.S. SEC's Division of Corporation Finance recently announced that certain blockchain staking activities do not involve securities. This means that participants in such activities aren't required to register these transactions under the Securities Act. This view applies specifically to proof-of-stake networks, including services provided by third-party custodians and node operators. Moreover, it covers self-staking and situations where custodians stake on behalf of asset owners. The SEC determined this decision using the Howey Test, offering much-anticipated clarity for 'staking-as-a-service' providers across the U.S. Meanwhile, some, like Commissioner Caroline Crenshaw, have criticized the statement, arguing it ignores significant risks to investors.
FAQ
❓ Are proof-of-stake activities considered securities by the SEC?
No, the SEC clarified that proof-of-stake activities do not constitute securities transactions.
❓ Does staking require SEC registration?
According to the SEC, participants in proof-of-stake activities do not need to register these transactions as securities.
❓ What is the Howey Test?
The Howey Test determines whether a transaction qualifies as an investment contract, hence a security.