<ul><li>The SEC clarifies that 'Protocol Staking' on open, permissionless PoS networks does not require registration with the agency, bringing legal clarity to decentralized blockchain operations.</li><li>Participants engaging in PoS by running nodes or delegating through recognized network protocols are exempt from securities regulations as long as they adhere to specific technical and custodial guidelines.</li><li>The SEC recognizes three PoS staking methods: Individual Node Staking, Self-Custodial Staking via Third Party, and Escrow Staking, each with distinct ownership and control arrangements.</li><li>This move is a relief for decentralized protocols and users, distinguishing protocol-level staking from centralized services, and reflects the SEC's efforts to navigate crypto asset regulations without hindering U.S. blockchain innovation.</li></ul>

SEC Clarifies Staking Rules for Proof-of-Stake Networks

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