In June 2025, the SEC clarified regulations surrounding crypto staking, stating that solo, delegated, and custodial staking linked directly to a network's consensus process are not considered securities offerings. This marks a significant shift, allowing validators and stakers to earn rewards without regulatory fear. Under the new guidelines, rewards from staking activities are viewed as compensation for services rather than profits from the efforts of others, thus avoiding the Howey test classification. However, practices such as yield farming, ROI-guaranteed DeFi products, and disguised lending schemes still fall under securities law. The SEC's moves support the broader adoption of Proof of Stake networks, ensuring that participants like validators, custodians, and retail investors can operate with more clarity and less regulatory uncertainty. Best practices for compliance include maintaining asset control and transparency in custodial arrangements. Overall, the SEC's guidelines set a new regulatory framework for crypto staking, promoting industry growth while distinguishing between legitimate staking and speculative investments.

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