On May 29, 2025, the SEC issued new guidelines clarifying that solo staking, delegated staking, and custodial staking on PoS networks are not securities offerings. This guidance establishes that staking rewards are compensation for participation in network validation rather than investment profits under the Howey test. This update alleviates regulatory concerns for validators and stakers, promoting the adoption of Proof-of-Stake networks. However, practices like yield farming and guaranteed ROI DeFi offerings remain classified as securities, highlighting the need for compliance in staking activities.
The SEC's latest guidance states that staking rewards from PoS networks are seen as compensation for services rendered, not securities profits.
Prior to the May 29 guideline, there was significant uncertainty about whether staking rewards would be classified as securities, creating a strong regulatory gray area.
The new SEC rules clarify which staking methods are permissible, providing support for validators and retail stakers to engage without regulatory fears.
Yield farming and other high-return DeFi schemes remain outside the legal framework and may still qualify as securities offerings, according to SEC evaluations.
Collection
[
|
...
]