SEC Provides Clarity on Protocol Staking in PoS Blockchains

The U.S. Securities and Exchange Commission (SEC) has clarified that protocol staking activities, where users lock up cryptocurrency to support network operations and earn rewards, typically do not fall under the jurisdiction of securities laws. In a recent guidance issued on May 29th by the SEC’s Division of Corporation Finance, the agency aims to provide clarity on the regulatory status of the crypto industry regarding staking.