Sec Under Fire For Crypto Staking Stance

The US Securities and Exchange Commission (SEC) is facing criticism over its evolving stance on crypto staking services. On May 29, the SEC's Division of Corporation Finance issued guidance that some crypto staking offerings may not be securities. This effectively exempts proof-of-stake blockchains from registration requirements under the Securities Act, according to the SEC. Former SEC chief of Internet Enforcement, John Reed Stark, argued that this move contradicts judicial findings in cases against Binance and Coinbase. These cases previously allowed allegations that staking products qualified as securities. Stark criticized the shift as "a shameful abdication of its investor protection mission" on X on May 29. Commissioner Caroline Crenshaw also issued a statement on May 29, warning that the staff's conclusions did not align with established case law or the Howey test. Crenshaw questioned the consistency of the commission's approach, pointing to instances where the agency appeared to treat certain digital assets, such as Ether (ETH) and Solana (SOL) tokens, as securities in a June 2 statement. Commissioner Hester Peirce stated at the Bitcoin 2025 conference in Las Vegas, Nevada, that the classification of a securities transaction depends more on the nature of the deal than the asset itself.