SEC Clarifies Proof-of-Stake Activity as Not Securities

The U.S. Securities and Exchange Commission (SEC) has issued guidance clarifying whether proof-of-stake (PoS) blockchain staking constitutes a security under federal law. The SEC Division of Corporation Finance announced on May 29 that certain PoS activity, including self-directed staking, third-party validator support, and custodial staking services, falls outside the definition of securities. This announcement has significant implications for the cryptocurrency industry, particularly for crypto exchange-traded funds (ETFs) aiming to offer staking rewards to investors.