A MAJOR TURNING POINT IN THE CRYPTO WORLD: GREEN LIGHT FOR STAKING FROM THE SEC!

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The U.S. Securities and Exchange Commission (SEC) made a historic move in the cryptocurrency market by announcing that staking activities in proof-of-stake (PoS) based blockchain networks are not considered securities. This decision eliminates the requirement for platforms offering staking services and investors to register with the SEC. This development is seen as a significant deviation from the tendency during the tenure of former SEC Chairman Gary Gensler to view staking as an investment contract.
In the statement made by the SEC's Corporate Finance Division, it was stated that staking activities were examined within the framework of the "Howey Test" and that these activities were not included in the category of financial instruments, especially for "collateralized crypto assets", (SEC, 2025). The Howey Test is a four-criteria test used to determine whether a transaction should be considered a security: an investment of money, a joint venture, the expectation of profit, and the profit being derived from the efforts of others, (FindLaw, n.d.). The SEC has stated that protocol staking activities are administrative or bureaucratic in nature, do not involve entrepreneurial or managerial effort, and thus do not meet the last element of the Howey Test.
SEC Commissioner Hester Peirce supported the decision, saying, "Providing security is not a 'security,'" emphasizing that the market has been clarified (Cointelegraph, 2025). This step could pave the way for cryptocurrency ETFs to offer products that involve staking, opening new doors for the industry. However, Democratic SEC Commissioner Caroline Crenshaw criticized the decision, arguing that it underpaints the legal picture, underestimates investor risks, and could increase regulatory uncertainty, (Cointelegraph, 2025). According to Crenshaw, this decision is an example of the approach of "acting in anticipation of future change, ignoring existing law" (Cointelegraph, 2025).
Conclusion: Although the SEC's decision has the potential to reduce uncertainties in the crypto sector and promote innovation, discussions will continue for the regulatory framework to be fully clarified and to ensure investor protection.