SEC Says Staking Is Not a Security — Boost for Liquid and Restaking Protocols

- SEC Specifies No Securities Registration Required for Proof-of-Stake Protocol Participation - Positive Signal for Liquid Staking As Technology Advances [Unblock Media] On May 30th, the U.S. Securities and Exchange Commission (SEC) issued guidelines regarding 'staking' activities, including the Proof-of-Stake (PoS) consensus mechanism. Following the existing guidelines for Proof-of-Work (PoW) based mining, the SEC officially stated that staking activities at the protocol level do not need to be registered under securities laws. The guidance clearly delineates that various types of staking, including self-staking, self-custodial staking, delegated staking, and custodial staking as a service, do not constitute the offering or sale of securities. SEC Commissioner Hester Peirce emphasized in a statement that "the act of providing security is not a security," underscoring that basic layer activities of protocol-based operations are technical and neutral. This position offers positive implications for other non-custodial staking models, including decentralized liquid staking. The industry has high expectations that these guidelines could reduce regulatory risks for liquid staking platforms that operate through automated protocols. Commissioner Peirce added, "Decentralized protocol participation that contributes to network security may not be subject to securities laws." Industry experts believe that this increases the potential for non-custodial staking models to be incorporated into mainstream regulation and that the clarified regulations will positively influence institutional investor inflow. Meanwhile, future policy changes are also being closely watched. The European Union is set to enforce the Markets in Crypto-Assets Regulation (MiCA) starting this December, which will bolster licensing requirements and investor protection provisions for staking service providers. The U.S. SEC also plans to release separate guidelines on liquid staking and restaking in the first half of 2025. On the technological front, the growth of restaking protocol EigenLayer is particularly notable. Restaking, which allows participation in multiple networks based on shared security, is expected to surpass $4 billion in Total Value Locked (TVL) this year. Additionally, the rapid adoption of technology to enhance smart contract automation and staking transparency is underway. The SEC's announcement is expected to serve as an important benchmark for future legal interpretations and policy design related to staking. In the evolving technological and regulatory landscape, market participants need to closely analyze increasingly complex legal risks.