SEC Says Some Staking Does Not Violate Securities Law, Boosting Ethereum ETF Plans

The US Securities and Exchange Commission (SEC) said some crypto staking does not violate US securities law, a decision that could boost Ethereum ETFs seeking to offer staking.

In a May 29 staff statement, the SEC’s Division of Corporation Finance said staking rewards are compensation for a service provided by node operators, and are not earned from “others’ entrepreneurial or managerial efforts.”

As such, certain “Protocol Staking Activities” do not need “to register with “the Commission transactions under the Securities Act.”

It added that the division’s view applies to staking of “covered crypto assets” on proof-of-stake networks, activities of third-party service providers such as custodians and node operators, and ancillary services

New SEC Guidance Opens The Door For Ethereum ETF Staking

The new guidance around staking on PoS blockchains and staking-as-a-serivce providers comes ahead of the SEC’s decision deadline set at around this summer regarding staking for Ethereum ETFs

Several Ethereum ETF issuers, including leading asset manager BlackRock, have pushed the SEC for a decision on whether they can offer their clients staking, which would allow clients to earn staking rewards through the ETFs

According to Rebecca Rettig, the chief legal officer at Jito Labs, the new guidance clears the path for crypto ETF funds to include staking in their products

Yep

— Rebecca Rettig (@RebeccaRettig1) May 29, 2025

SEC Commissioners Have Mixed Views On New Staking Guidance

Republican SEC Commissioner and the leader of the regulator’s Crypto Task Force, Hester Pierce, who is also known as “Crypto Mom” for her crypto advocacy, celebrated the new classification of certain staking activities

She said the guidance was a “welcome clarity for stakers and staking-as-a-service providers” in the US.

However, SEC Commissioner Caroline Crenshaw, who is the only Democrat at the agency, slammed the guidance

In a statement, Crenshaw said the staff’s decision reflects “what some wish the law to be,” but does not “square with the court decisions on staking and the longstanding Howey precedent on which they are based.”

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