SEC’s Hester Peirce Clarifies PoS Staking Rules, Easing Regulatory Concerns for Institutions
SEC Commissioner Hester Peirce has clarified that technical activities related to Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) networks are not subject to U.S. securities laws—a move that could open the door for greater institutional participation in crypto staking.
Speaking on May 19 as head of the SEC’s Crypto Working Group, Peirce stated that actions like node operation, validation, attestation, and running related software for PoS consensus mechanisms are fundamentally technical in nature and do not qualify as securities transactions under current law.
“Technical behaviors that directly participate in Proof of Stake and Delegated Proof of Stake consensus mechanisms… are not within the jurisdiction of securities laws,” Peirce said. “These activities are fundamentally technical and do not, by themselves, constitute securities transactions.”
This announcement provides long-awaited regulatory clarity for financial institutions and crypto service providers in the U.S., many of whom had scaled back or paused staking services due to legal uncertainty—especially following high-profile SEC enforcement actions like the 2023 case against Kraken.
Boost to Institutional Confidence
The clarification is already being welcomed across the crypto and financial sectors. Industry leaders and trade groups such as the Securities Industry and Financial Markets Association (SIFMA) have praised the SEC’s move, viewing it as a positive step toward balancing innovation with investor protection.
Analysts say this regulatory clarity could lead to increased institutional involvement in PoS staking, potentially boosting both liquidity and network security across leading blockchains like Ethereum and others.
A Shift from Enforcement to Clarity
The SEC’s prior stance on staking had raised concerns across the industry, contributing to a chilling effect on centralized staking services in the U.S. Peirce’s remarks mark a significant shift toward regulatory transparency and could help reverse that trend.
With this new guidance, U.S. institutions may feel more confident participating in staking ecosystems—supporting both blockchain decentralization and the broader adoption of crypto infrastructure.
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