The Securities and Exchange Commission of the United States (SEC) finance division said that certain activities of the blockchain of proof of proof (POS) do not fall under the definition of securities transactions under federal regulations.
Industry experts suggest that this development could open the door to funds (ETF) negotiated in exchange for crypto (ETF) to integrate the characteristics of implementation in their products.
SEC ensures regulatory clarity on the clears
The Corporation Finance division published the Declaration on May 29, 2025. He specifies that the activities of putting the protocol on standby, which include solo stimulus, the implementation of self-affection via third-party validators and childcare arrangements where platforms accumulate assets for customers, do not imply the supply or sale of titles.
“It is the opinion of the division according to which the” activities of implementation of the protocol “in relation to the implementation of the protocol do not imply the offer and the sale of securities within the meaning of article 2 (a) (1) (1) of the securities law of 1933 (the” securities law “) or article 3 (a) (10) (10) exchange ”) said the declaration.
The division has also specified that the auxiliary services associated with development, such as cut -off insurance or early withdrawal options, are not considered as securities activities. A crucial factor in this reasoning is that the rewards won by the markup are generated by the underlying protocol of the network, not by third parties.
According to the SEC branch, participation does not meet the criteria of an investment contract under the Howey test. Consequently, participants in these features are not required to record their transactions as titles with the SEC.
This provides greater regulatory clarity and reduces legal uncertainty for participants in the POS network and service providers. Commissioner Hester Peirce, speaking at the Bitcoin conference, strengthened this point of view, declaring,
“Offering security is not security.”
These guidelines mark an important step in continuous dry efforts to define the regulatory framework for cryptocurrency activities. He followed a similar clarity provided for proof of work (POW) in March 2025.
What drying tips mean for ETF Crypto
In particular, clarification could have large -scale implications. Industry experts suggest that this could facilitate the integration of the characteristics of jealking in the Crypto FNB.
“This is a big problem for FNB suppliers who want to offer a clears. These advice specifies that the implementation of this format is generally not considered as a transaction in securities by the division of finance of companies,” said Eleanor Terrett de Crypto in America.
Rebecca Rettig, legal director of Jito Labs, also shared a similar point of view. Beincryptto reported that in April, the SEC extended the deadline for its decision on the advisability of approving the featured set of Graycale de Grayccale ETF until July 2025. This highlighted the prudence of the regulator. However, the new clarity can increase the approval ratings.
However, the last statement was not without criticism. Democratic commissioner Caroline Crenshaw responded to the clarification declaration. It argued that the DECIAL DECLARY DECLARE is in conflict with existing law.
Crenshaw stressed that judicial decisions have classified the participation programs in a service as investment contracts as part of the Howey test. Thus, this would subject them to regulations as titles.
“I continue to believe that these staff statements do more harm than good by pretending to carve out large categories of cryptographic products without analyzing the realities of the way they really work. These statements paint an incomplete image that obscures, rather than clarifies, what is the law, “said Crenshaw.
She also expressed her concerns about the wave approach to the dry. The commissioner suggested that he underestimate and denounce the significant risks that these products pose to investors and markets.
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