In June 2025, the SEC clarified its stance on crypto staking, confirming that solo staking, delegated staking, and custodial staking tied directly to a network’s consensus are not considered securities offerings. This marks a significant shift, as it resolves previous uncertainties regarding legal implications for staking activities. The guidance issued categorizes staking rewards as compensation for services rendered rather than returns on investment, exempting them from the Howey test criteria. Activities such as yield farming or lending schemes, however, remain classified as securities offerings. The SEC's new rules allow validators and node operators to engage without regulatory concerns, promoting broader participation in Proof of Stake (PoS) networks. With this new regulatory clarity, individual stakers and custodial service providers can operate confidently, fostering an environment conducive to innovation and compliance in the crypto space.

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