The U.S. Securities and Exchange Commission (SEC) has provided much-needed clarity on the regulatory status of Proof-of-Stake (PoS) networks, specifically stating that certain staking activities do not constitute securities transactions under federal law. This announcement fosters a more favorable environment for PoS networks and their participants. XDC Network, with its robust regulatory compliance efforts, stands to benefit from this clarification. The SEC emphasizes that staking rewards are compensation for services provided to the network, rather than profits derived from others’ efforts, which aligns with the Howey Test for securities determination. This distinction has alleviated previous concerns regarding staking activities, encouraging broader participation in PoS networks such as Ethereum, Solana, Cardano, Toncoin and many more.