Staking legalization: Breakthrough for crypto market or new risk zone

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The SEC no longer considers staking a securities transaction: what has changed?

What has changed

The SEC’s new statement has removed this issue from the agenda. It was clearly stated that staking and related tokens (staking receipt tokens) do not fall under the definition of securities.

According to official guidance from the SEC’s Division of Corporation Finance, the issuance, minting, and redemption of these tokens — used in conjunction with staking crypto assets — do not qualify as securities under either the Securities Act of 1933 or the Securities Exchange Act of 1934. The decision is based on the Howey Test, a legal framework used to determine whether a transaction constitutes an investment contract.

The SEC concluded that the value of staking tokens does not depend on the efforts of third parties. Instead, their value is directly tied to the performance of the underlying staked assets, not to any entrepreneurial or managerial activities of liquid staking providers or third parties. As a result, the SEC classified these tokens as “administrative or ministerial” in nature, rather than investment instruments.

For the industry, this is a breath of fresh air, allowing the development of new products without fear of being accused of breaking the law. However, the professional community’s reaction has been mixed.

An inside perspective: Concerns and support

Amanda Fischer, a former top SEC official and close associate of Gary Gensler, publicly expressed serious concerns. She compared liquid staking to “rehypothecation 2.0” — a practice that contributed to the global financial crisis of 2008.

In her view, the possibility of repeatedly using the same assets (re-staking) creates tangled chains of financial obligations that could trigger the collapse of the entire system if problems arise.

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In contrast, market experts such as Matthew Sigel from VanEck and Joe Doll from Magic Eden believe Fischer’s statements are either the result of misunderstanding or a deliberate distortion of the nature of liquid staking. They emphasize that decentralized blockchain networks are inherently transparent and unlike traditional financial institutions entangled in mutual obligations.

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The dual nature of innovation

The complexity of the issue lies in the fact that staking is an innovation that simultaneously opens new opportunities and carries potential risks. On one hand, it increases asset liquidity and allows token holders to earn income without losing control over their tokens. On the other hand, repeated “re-staking” and insufficient regulatory transparency can create hidden systemic risks.

The SEC’s current decision is an invitation for the crypto industry to take responsibility for its own security and transparency. Regulators, for their part, signal their willingness to engage in dialogue but expect a mature approach to risk management from the industry.

What lies ahead for the market?

The reaction from major players is already evident: exchanges and custodial services are actively expanding staking offerings, improving products, and attracting institutional investors. However, challenges of transparency and the need to develop industry standards remain key.

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Ultimately, it is the joint effort of regulators, developers, and users that can make the crypto ecosystem safe and resilient.

Conclusion

The SEC’s decision is an important and positive step for the industry, opening the door to innovation and growth. But freedom without responsibility can lead to new problems. Now, at this turning point, the crypto market must prove it can use the freedom granted wisely, maintaining a balance between innovation and stability.

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