The SEC just dropped some news that’s got the crypto world cheering. They said staking isn’t a securities transaction.
No registration needed. Boom. That’s a major win for the crypto industry, and it might just clear the way for the Ether staking ETFs to finally get the green light.
Staking is fundamental
On May 29, the SEC’s Division of Corporation Finance made it official, and said that “Protocol Staking Activities,” like staking crypto on proof-of-stake blockchains, don’t have to register as securities.
Alison Mangiero, the head honcho for staking policy at the Crypto Council for Innovation, called it a major step forward.
She said the SEC finally gets it, staking is just how blockchains roll, not some fancy investment contract. That clarity? It’s like finally getting the office memo after weeks of confusion.
The crypto community has been banging on the SEC’s door for clearer rules on staking. Back in April, the CCI’s Proof of Stake Alliance rallied nearly 30 groups to send a detailed letter to the SEC’s Crypto Task Force.
They argued that staking services, whether you hold the keys or not, aren’t investment contracts.
It’s like telling your boss that your coffee break isn’t a vacation, it’s just part of the job.
Waiting for the decision
Mangiero called this move a win for stakers and the broader crypto community. But don’t pop the champagne just yet, because the SEC’s still dragging its feet on approving Ether staking ETFs.
Just days before, they delayed decisions on Bitwise’s Ether staking ETF and Grayscale’s XRP ETF. So, the jury’s still out.
Marcin Kazmierczak from RedStone called the guidance a notable shift from the SEC’s old enforcement-heavy ways.
He said it’s real progress, but don’t expect fireworks overnight. This is more like laying the foundation for better rules down the road.
He predicts staking ETFs might get approved by late 2025. That’s like waiting for the printer to finally work after months of jams, patience, people.
Systemic changes at the regulator
The SEC’s Crypto Task Force, led by Commissioner Hester Peirce, is cooking up a report on crypto regulations, expected soon.
SEC Chair Paul Atkins hinted at this in a May 20 hearing. The whole thing shows the SEC’s slowly moving from crackdowns to cooperation. Hallelujah!
So, the SEC’s new staking guidance is a pretty big deal, it’s the regulatory equivalent of finally letting employees work from home. Maybe it’s not the revolution some hoped for, but it’s definitely progress.
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