SEC Signals Softer Stance on Staking Products
Commission staff issued informal guidance clarifying that certain custodial staking arrangements may fall outside securities laws.
SEC staff issued informal guidance this week clarifying that certain custodial staking arrangements offered by exchanges and custodians may fall outside the definition of a securities offering, provided that the arrangements meet specific criteria around discretion, risk of loss and the nature of the rewards.
The guidance stops well short of a formal rule and preserves the commission's ability to pursue enforcement actions against products that materially differ from the described fact pattern. Legal advisers have nonetheless welcomed it as an incremental step toward a workable staking framework.
Industry groups have been pressing for clearer treatment of staking following a series of settlements with major US exchanges in recent years. Several issuers of spot Ether ETFs continue to lobby for staking to be permitted within their products.
