SEC.gov | Statement on Certain Protocol Staking Activities

The SEC's Division of Corporation Finance states its view that certain "Protocol Staking Activities" on proof-of-stake networks do not involve the offer and sale of securities under the Securities Act of 1933 or the Securities Exchange Act of 1934. The statement covers staking of "Covered Crypto Assets" that are intrinsically linked to a public, permissionless network's consensus mechanism, across self (solo) staking, self-custodial staking with a third party, and custodial arrangements. For self staking, it argues that a Node Operator's activity is administrative or ministerial, so rewards are not derived from the efforts of others under the Howey test.