The SEC is under fire for its shifting stance on crypto staking services, with critics arguing that the new guidance contradicts previous court rulings and past enforcement actions. On May 29, the SEC's Division of Corporation Finance claimed that some staking offerings might not be considered securities, which could exempt certain proof-of-stake blockchains from registration under the Securities Act. Former SEC official John Reed Stark criticized this move, stating it undermines investor protection and contradicts key judicial outcomes in cases involving Binance and Coinbase. Moreover, Commissioner Caroline Crenshaw expressed concern that the agency's current analysis does not align with established case law, highlighting inconsistencies in how digital assets like Ether and Solana are treated under the law. This criticism comes during a period of increased deregulatory actions by the SEC, which many see as fueling confusion rather than clarity regarding crypto regulations. Hester Peirce, another commissioner, emphasized the need for clear guidance on whether transactions involving crypto assets deemed not to be securities can still fall under securities transactions. Overall, the SEC's recent actions are perceived as a departure from its long-standing regulatory philosophy, potentially complicating the regulatory landscape for digital assets.

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