TechFlow news, May 29 — According to the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance, the division issued a statement regarding specific staking activities in proof-of-stake (PoS) networks. The statement indicates that "protocol staking activities" conducted within proof-of-stake networks do not constitute offers or sales of securities as defined under the Securities Act of 1933 and the Securities Exchange Act of 1934.
The statement covers three types of staking activities: solo staking, non-custodial third-party staking, and custodial staking arrangements. The SEC's Division of Corporation Finance considers these activities to be administrative or managerial in nature, and not reliant on the entrepreneurial or managerial efforts of others; therefore, they do not satisfy the "expectation of profit derived from the efforts of others" element of the Howey Test.
Notably, the statement does not cover other forms of staking activities such as liquid staking, restaking, or liquid restaking.
