SEC Official Clarifies Staking Activities Outside Securities Law Jurisdiction

According to PANews, Hester Peirce, head of the U.S. Securities and Exchange Commission's (SEC) crypto task force, stated in a speech on May 19 that technical activities involved in direct participation in Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) systems do not fall under the jurisdiction of securities laws. This marks the first time a senior SEC official has made such a declaration regarding staking activities. Peirce highlighted that the SEC plans to issue further guidance to clarify which activities are not subject to securities laws, including technical services that assist in participating in consensus mechanisms. She acknowledged that the SEC's past enforcement and regulatory approaches have not effectively prevented fraud and have instead caused confusion for compliant operators. This statement is seen as a positive signal for U.S. institutions engaging in staking activities. Figment, a staking service provider, noted that this development is expected to encourage broader adoption of staking services by U.S. institutions.