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U.S. SEC Clarifies Protocol Staking on Proof-of-Stake Networks

  • The U.S. SEC's Division of Corporation Finance clarified that protocol staking on public, permissionless PoS networks does not involve securities transactions.
  • Services like slashing protection, early unstaking, reward distribution, and asset aggregation in protocol staking are not seen as offers or sales of securities.
  • Self-staking, self-custodial staking, and custodial staking arrangements are considered to fall outside the definition of securities under current federal law by the Division.
  • Regulatory clarity from the SEC paves the way for growth and development of PoS networks and staking services while ensuring compliance with federal laws.

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