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How to legally stake crypto in 2025: What is now allowed after the SEC’s latest move


2025-06-189622 Views

Key takeaways

  • The SEC has clarified that solo staking, delegated staking and custodial staking, when tied directly to a network’s consensus process, do not qualify as securities offerings.
  • Post May 29 guideline, rewards earned from network validation are seen as compensation for services, not profits from the efforts of others, removing them from the Howey test classification.
  • Validators, node operators and retail or institutional stakers can now participate without fear of regulatory uncertainty, encouraging wider adoption of PoS networks.
  • Yield farming, ROI-guaranteed DeFi bundles and staking-disguised lending schemes remain outside legal bounds and may be treated as securities offerings.

On May 29, 2025, the US Securities and Exchange Commission issued new guidance regarding crypto staking to bring regulatory clarity. Before the guideline was issued, investors and service providers were unsure whether regulators would view staking rewards as securities or not, risking legal trouble. 

The SEC’s latest move clearly outlines which types of staking are allowed and which are not. The guidance provides clear regulatory support for node operators, validators and individual stakers, recognizing protocol staking as a core network function rather than a speculative investment.

This article explains how regulators will treat crypto staking under the new rules, which activities are still not allowed, who will benefit, and what practices to avoid. 

Whether you are a solo validator or using a staking service, understanding these updates is key to staying compliant in the US.

The SEC’s latest guidance on staking

In 2025, the SEC’s Division of Corporation Finance released groundbreaking guidance stating the scenarios when the protocol staking on proof-of-stake (PoS) networks will not be considered a securities offering. 

  • This guidance applies to solo staking, delegating to third-party validators and custodial setups as long as these methods are directly linked to the network’s consensus process. 
  • The SEC clarified that these staking activities do not meet the criteria of an “investment contract” under the Howey test. 
  • The regulator also distinguished genuine protocol staking from schemes that promise profits from others’ efforts, like lending or speculative platforms. 
  • According to the guidance, staking rewards earned through direct participation in network activities, such as validating transactions or securing the blockchain, will not be viewed as investment returns.





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