The SEC has clarified that certain aspects of Proof-of-Stake (PoS) systems are not subject to securities regulations. Commissioner Hester Peirce’s announcement on May 19, 2025, signifies a significant step towards facilitating broader adoption of PoS by US institutions. This move comes after the SEC challenged staking activities in its case against Kraken, leading to limited participation from institutional investors. The new clarity from the SEC could potentially increase confidence and encourage more engagement with PoS platforms like Ethereum (ETH). Peirce’s statement underscores that technical operations related to PoS consensus mechanisms are not considered securities transactions. This development marks a positive shift for the industry by removing roadblocks for institutions seeking to participate in PoS staking.