On May 29, 2025, the Securities and Exchange Commission (SEC) released official guidance. This guidance would go on to make clear the regulatory landscape for cryptocurrency staking. This decision settles years of uncertainty for investors, developers, and staking service providers, confirming that certain types of staking tied directly to blockchain networks are not considered securities. The guidance notably focuses here on self-staking, delegated staking, and custodial staking where it’s all conducted transparently.

The SEC's guidance encompasses various staking methods. This means solo staking, where people stake on their own to help validate transactions. It further addresses delegated staking to TPA validators, and custodial staking, as long as it is done transparently.

The new environmental justice guidance extends on the SEC’s March statement on proof-of-work mining operations. Second, it further establishes the limits of regulatory jurisdiction and authority in this emerging digital asset landscape. The SEC is performing a public service by clarifying which staking activities do not constitute securities transactions. Collectively, this effort is establishing a more transparent and predictable environment for everyone.

We believe the SEC’s move will open up new avenues of participation – especially among retail investors – in staking activities. The guidance assists players who posed a real risk of running afoul of SEC rules. This opens the door for more institutional and retail participation in staking. It further provides much needed clarity on where the line is drawn on SEC law and staking.

That clarity around the rules of the road is sure to open up even more opportunities for innovation and investment in the growing blockchain ecosystem. By having a more transparent view of the regulatory landscape, developers can more confidently construct innovative new staking services and protocols. Investors should be able to deploy capital to staking opportunities without the looming threat of sudden adversarial regulatory enforcement.