SEC Crypto Staking Guidance Marks Major Step Forward for US, Says Crypto Council

The U.S. Securities and Exchange Commission’s (SEC) new stance on cryptocurrency staking is being widely celebrated as a breakthrough for the crypto industry and a move toward clearer, globally consistent digital asset regulations.

In a May 29 statement, the SEC’s Division of Corporation Finance clarified that protocol staking activities — such as cryptocurrencies staked in proof-of-stake blockchains — do not require registering transactions under the Securities Act.

“This is a major step forward,” said Alison Mangiero, head of staking policy at the Crypto Council for Innovation (CCI).

“The SEC has now recognized what we’ve long argued: staking is a core part of how modern blockchains operate, not an investment contract. That clarity is critical.”

For years, the crypto industry has pushed for clearer guidance on staking. In April, CCI’s Proof of Stake Alliance, together with nearly 30 other organizations, submitted a detailed letter to the SEC’s Crypto Task Force, arguing that both custodial and non-custodial staking service providers are distinct from investment contracts.

The SEC’s Division of Corporation Finance said some protocol staking activities don’t qualify as securities offerings. Source: SEC

Mangiero added, “The SEC has opened the door to more sensible regulation — this is a win for stakers and the broader crypto community.”

However, while the guidance marks progress, the industry still awaits approval of the first Ether (ETH) staking ETFs. On May 21, the SEC postponed its decision on  Bitwise’s application to add staking to its Ether ETF, alongside a decision on Grayscale’s XRP ETF.

A Notable Shift in Approach

The SEC’s updated guidance reflects a notable shift from its previous enforcement-heavy approach, said Marcin Kazmierczak, co-founder and chief operations officer at blockchain oracle firm RedStone.

“This represents genuine progress toward regulatory clarity, but it’s evolutionary rather than revolutionary,” he commented.

Paul Atkins at a May 20 SEC oversight hearing. Source: House Appropriations Committee

Kazmierczak believes the foundation is being laid for comprehensive crypto regulation, with staking ETF approvals becoming increasingly plausible by late 2025.

The SEC’s formation of a dedicated Crypto Task Force in January 2025, led by Commissioner Hester Peirce, marked another step away from past regulatory strategies. SEC Chair Paul Atkins stated in a recent hearing that the task force is preparing to release its first regulatory report within the next few months.

The new guidance is also a milestone following years of advocacy by CCI’s Proof of Stake Alliance, which has consistently worked to educate policymakers on the importance of crypto staking.

“We’ve consistently argued that protocol staking is not an investment activity — it’s a core function of how modern blockchains operate,” Mangiero emphasized, calling the SEC’s latest announcement meaningful progress toward recognizing that distinction.