In a statement released May 29, the U.S. Securities and Exchange Commission (SEC) provided long-awaited clarity on Proof-of-Stake (PoS) protocol staking, stating that staking rewards earned directly from native blockchain protocols do not, in themselves, constitute securities.
The official document makes an important distinction between protocol-level staking and intermediary staking services, like those offered by centralized exchanges or custodians.
“When staking services are provided by third parties, especially in exchange for pooled assets or profit-sharing, they may still fall under securities regulations,” the SEC clarified.
What It Means for DeFi
The news is being interpreted as a positive signal for decentralized finance protocols, particularly those operating validator networks or offering native staking without custodial layers.
Projects like Ethereum, Cosmos, Solana, and others that use protocol-native staking may benefit from reduced legal uncertainty, at least in the U.S. market.
That said, centralized staking services remain under scrutiny, and any protocol that wraps or intermediates staking could still be at risk.
Final Thoughts: SEC’s PoS Guidance May Ease Pressure on DeFi – For Now
While the SEC’s tone remains cautious, this update is a rare moment of clarity in a regulatory environment often hostile to crypto. For DeFi builders and token networks relying on PoS consensus, it may mark a turning point — or at least, a temporary reprieve.
