Discover the SEC's 2025 crypto staking rules, what activities are allowed, and best practices for legal compliance.
Contents
- Understanding the 2025 SEC Guidelines on Crypto Staking
- The SEC’s Latest Stance on Staking Activities
- Guidance on Ancillary Staking Services
- Benefits for PoS Ecosystem Stakeholders
- SEC’s Distinction Between Staking and Securities
- Best Practices for Legal Staking in 2025
- The Impact of the 2025 SEC Guidelines on Crypto Staking
4 min read
Understanding the 2025 SEC Guidelines on Crypto Staking
The U.S. Securities and Exchange Commission (SEC) has issued new guidelines in 2025 that clarify the legal framework for crypto staking. These rules outline permissible activities and aim to eliminate previous ambiguities surrounding staking rewards and securities regulations.
Key Takeaways from the SEC’s 2025 Staking Guidelines
Solo staking, delegated staking, and custodial staking, when directly linked to a network’s consensus, are not considered securities offerings.
Rewards from network validation are categorized as service compensation, not profits derived from others’ efforts, thus not subject to the Howey test.
Validators and node operators can engage in staking without legal uncertainty, promoting wider adoption of Proof of Stake (PoS) networks.
Yield farming and ROI-guaranteed DeFi schemes may still be treated as securities offerings.
The SEC’s Latest Stance on Staking Activities
On May 29, 2025, the SEC released guidelines that help differentiate lawful staking activities from those that may constitute securities offerings. The focus is on staking activities integral to a network’s consensus process.
The guidelines apply to solo staking, delegated staking, and custodial setups, as long as they are connected to consensus processes.
These activities do not meet the criteria of an “investment contract” under the Howey test.
Staking rewards earned through direct participation in network activities, such as transaction validation, are not viewed as investment returns.
Related: Lido's Dominance Eases as 160,000 ETH Leaves, Binance's Liquid Staking Platform Sees Growth
Allowed Staking Practices Under the New Rules
The SEC’s guidance highlights specific staking activities on PoS networks that do not constitute securities offerings:
Solo staking: Individuals can stake using their resources, retaining ownership and control over their assets.
Delegated staking (non-custodial): Users can delegate validation rights to third-party operators while retaining control of their assets.
Custodial staking: Crypto exchanges can stake on users’ behalf if assets are held for the owner’s benefit and disclosed transparently.
Running validator services: Operating validator nodes is viewed as a technical service, not an investment in a third party.
Guidance on Ancillary Staking Services
Service providers may offer “ancillary services” that are administrative in nature:
Slashing coverage: Providers can compensate for losses due to slashing.
Early unbonding: Assets may be returned to owners before the protocol’s unbonding period ends.
Flexible rewards schedules: Projects can deliver rewards on varying schedules without fixing amounts beyond what the protocol provides.
Related: SUI Introduces Groundbreaking Bitcoin Staking Technology
Asset aggregation: Protocols can combine assets to meet staking minimums, supporting validation without entrepreneurial efforts.
Benefits for PoS Ecosystem Stakeholders
The SEC’s guidance offers several benefits for stakeholders in the PoS ecosystem:
Validators and node operators: They can stake and earn rewards without registering under securities laws.
PoS network developers: The guidance supports network designs without altering token economics.
Custodial service providers: Exchanges can operate legally by disclosing terms and keeping assets separate.
Retail investors and institutions: They can engage in staking with greater assurance, encouraging broader participation.
SEC’s Distinction Between Staking and Securities
The SEC differentiates between protocol-based staking and activities resembling investment contracts:
Non-consensus yield farming: Earning returns from non-consensus activities falls under securities laws.
Opaque DeFi products: Complex products with unclear rewards or profit guarantees face regulatory scrutiny.
Related: Anchorage Digital Expands its Services to Include Ether Staking Support
Disguised lending as staking: Services generating returns through third-party investments labeled as “staking” are not compliant.
Best Practices for Legal Staking in 2025
To ensure compliance, participants and service providers should adopt these best practices:
Support network consensus: Ensure staking directly contributes to blockchain validation.
Maintain transparency: Custodians should clearly disclose asset ownership and avoid speculative uses.
Seek legal advice: Consult legal counsel to ensure compliance with SEC guidance.
Avoid fixed returns: Earnings should be determined by the protocol, not guaranteed returns.
Clear documentation: Provide clear terms on user rights, asset use, and custody.
The Impact of the 2025 SEC Guidelines on Crypto Staking
The SEC’s 2025 guideline marks a significant development for crypto staking, providing clear rules and distinguishing between legitimate staking and investment contracts. This framework encourages compliance, institutional adoption, and innovation within PoS ecosystems.
This article does not provide investment advice. Please conduct your own research before making investment decisions.
Emily brings a decade of expertise in blockchain technology and decentralized finance (DeFi). She specializes in market trends and regulatory developments, providing in-depth analyses that resonate with seasoned investors and beginners alike. With a background in financial journalism, she is dedicated to bringing clarity to the fast-paced world of crypto.
