The U.S. Securities and Exchange Commission (SEC) has issued a landmark regulatory update on May 29, 2025, offering long-awaited clarity on how crypto staking should be treated under federal securities laws. With this move, individual and institutional participants in proof-of-stake (PoS) networks finally have a rulebook for legal compliance.
What Staking Is Now Allowed Under the SEC’s 2025 Guidelines?
The SEC now officially recognizes that certain forms of staking do not qualify as securities offerings under the Howey test. This includes:
- Solo staking: Validators running their own nodes and using their own assets can legally earn rewards.
- Delegated staking: Users can delegate tokens to third-party validators without triggering securities laws—provided they maintain control over their assets.
- Custodial staking: Platforms like exchanges may stake on behalf of users if they ensure clear disclosures, proper asset segregation, and no profit guarantees.
- Validator services: Node operators are considered service providers rather than issuers of investment contracts.
These actions, when tied directly to a network’s consensus mechanism, are considered compensation for technical contributions—not profit from others’ efforts.
Also read: How to Use Render Network for Decentralized GPU Rendering: A Step-by-Step Guide
What’s Still Not Compliant?
Despite the progress, the SEC drew a hard line on several practices:
- Yield farming schemes not involved in validation processes
- ROI-promising DeFi bundles with opaque or guaranteed returns
- Lending disguised as staking on centralized platforms
Such products may still be prosecuted as unregistered securities under current law.
Crypto Staking in 2025: Best Practices for Staying Legal Under New SEC Rules
The SEC guidance encourages transparent and consensus-aligned participation. Legal best practices now include:
- Staking only through protocol-linked mechanisms
- Avoiding fixed-return promotions
- Disclosing custodial arrangements and user rights
- Ensuring services are administrative, not entrepreneurial
- Seeking legal counsel when launching staking-as-a-service models
These standards aim to support a sustainable, compliant staking environment in the U.S.
Why the New Rules Matter for the PoS Ecosystem
The 2025 staking guidelines unlock new potential for PoS ecosystems. Developers can now build without fear of triggering securities laws. Exchanges can legally offer staking with proper disclosures. And retail and institutional stakers gain legal confidence to participate.
By removing the regulatory grey area, the SEC has created a pathway for innovation, decentralization, and wider adoption of staking.