From Cointelegraph

June 13, 2025 11:51 am:

In 2025, the SEC clarified that solo staking, delegated staking, and custodial staking tied directly to a network’s consensus process are not securities offerings. This guidance removes uncertainty, encouraging wider adoption of PoS networks. Yield farming and ROI-guaranteed DeFi bundles remain outside legal bounds. The SEC’s move provides regulatory clarity for staking. Validators, node operators, and retail or institutional stakers benefit from the new rules.

The SEC’s Division of Corporation Finance issued guidance on protocol staking for PoS networks. Solo staking, delegating to third-party validators, and custodial setups linked to the network’s consensus process do not meet the “investment contract” criteria under the Howey test. Genuine protocol staking is distinguished from profit-generating schemes.

Under the SEC’s new rules, solo staking, delegated staking, and custodial staking are allowed as long as they are part of the network’s consensus process. This includes running validator services and using custodial services transparently. Staking pools democratize access by allowing users to combine smaller amounts of tokens.

Service providers can offer ancillary services like slashing coverage, early unbonding, flexible rewards schedules, and asset aggregation to stakers. These services should be administrative, not involving entrepreneurial efforts. Stakeholders in the PoS ecosystem benefit from the SEC’s guidance, reducing legal risks for validators, node operators, and custodial service providers.

The SEC’s guidance delineates between legitimate staking activities tied to network consensus and practices resembling investment contracts. Yield farming, bundled DeFi staking products promising ROI, and centralized platforms disguising lending as staking fall outside the guideline. The SEC’s focus is on consensus-based participation, not all staking variations.

Best practices for legal crypto staking in 2025 include ensuring staking supports network consensus, maintaining transparent custodial arrangements, consulting legal counsel, avoiding fixed or guaranteed returns, and using clear disclosures. Compliance with these practices ensures staking activities align with the SEC’s guidance on consensus-based participation.

The SEC’s 2025 guidelines mark a turning point for crypto staking in the US, providing clear rules for staking in PoS protocols. The guideline separates protocol staking supporting network consensus from yield-generating products classified as investment contracts. This framework encourages institutional adoption, innovation in staking services, and greater retail participation, fostering growth in PoS ecosystems.

Read more at Cointelegraph: How to Stake Crypto Safely and Legally in 2025