<ul><li>SEC's Division of Corporation Finance stated that protocol staking activities on networks using proof-of-stake consensus are not considered securities offerings under federal laws and do not require registration.</li><li>The Division clarified that participants in Protocol Staking Activities do not need to register with the SEC under the Securities Act.</li><li>Staking arrangements were categorized into different types, and it was concluded that staking rewards do not rely on entrepreneurial efforts of others, hence failing the Howey test.</li><li>In related news, US lawmakers introduced the CLARITY Act of 2025, a regulatory framework for crypto assets, to bring clarity and consumer protection in the digital asset ecosystem.</li></ul>

SEC Endorses Crypto Staking as Non-Security Activity in Landmark Guidance

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