The U.S. Securities and Exchange Commission (SEC) just dropped a bombshell that could redefine the cryptocurrency landscape: staking is not a security. This isn’t just a dry regulatory tweak—it’s a seismic shift that could turbocharge the crypto industry, particularly for proof-of-stake (PoS) networks like Ethereum, Solana, Cosmos, and Avalanche (AVAX). After years of regulatory fog that stifled innovation and sent projects scurrying overseas, the SEC’s ruling is a beacon of clarity. It’s a win for decentralization, a boost for U.S. competitiveness, and a wake-up call for the world. Here’s why this matters—and why I’m more excited about crypto’s future than ever.
A Long-Overdue Victory
For too long, the crypto industry has been haunted by the SEC’s vague threats. Staking—where users lock up tokens to secure a blockchain and earn rewards—powers PoS networks, which are leaner and greener than Bitcoin’s energy-hungry proof-of-work model. But the SEC’s earlier stance suggested staking might fall under the Howey Test, branding it a security and burying it under red tape. The fear was real: in 2021, as Ethereum geared up for its PoS switch, only 12% of its staking nodes were U.S.-based, dwarfed by Europe’s 45%. Why? Regulatory hostility pushed innovation offshore.
Now, the SEC has flipped the script. It’s declared that protocol staking—whether you’re running your own node, using a custodian, or delegating tokens—doesn’t count as a security. This isn’t some lawyerly nitpick; it’s a recognition that staking is about participation, not passive investment. It’s the lifeblood of decentralized networks, not a Wall Street stock. For someone like me, who’s tracked crypto since Ethereum was a fledgling dream in 2016, this feels like vindication. The U.S. is finally catching up to what Web3 stands for.
Powering the PoS Giants
The winners here are obvious: Ethereum, Solana, Cosmos, and AVAX. Ethereum’s 2022 PoS transition was a tech triumph, with over 32 million ETH staked—worth $100 billion. This ruling could unleash a flood of U.S. stakers, supercharging its growth. Solana, with 70% of its supply staked and transactions that scream past competitors, gets a green light to expand Stateside. Trailblazers in interoperability and scalability, can now breathe easier in the U.S. market. Globally, over $200 billion in assets are staked, generating around $10 to 20 billion in rewards yearly. The SEC just handed this ecosystem a megaphone.
But it’s not a free-for-all. The SEC smartly carved out an exception: “misleading yield products”—schemes promising juicy returns without securing networks—are still securities. Think of the shady “staking” products that don’t run nodes but dangle 20% APYs. I’ve seen this movie before—ICO scams in 2017, DeFi busts in 2020—and it always ends badly. The SEC’s line in the sand protects users while letting real staking shine. It’s a rare regulatory home run.
The U.S. Steps Up, Europe Stumbles
This ruling isn’t just about staking—it’s a sign the U.S. wants to lead the crypto race. Bitcoin and Ethereum ETFs, already manage $50 billion volume daily. Stablecoin laws are in the works, with USDC and USDT at over $210 billion market cap. And with Trump as the President, his pro-crypto vibe could cement this trend. Compare that to Europe, where the MiCA regulation is a wet blanket. Caps on stablecoins and fuzzy staking rules have EU crypto firms citing regulatory uncertainty as their top headache. Europe’s playing it safe, but it’s losing ground.
Singapore’s fading, too. Once a crypto darling, its May 2024 crackdown—shutting unlicensed exchanges by June 30—has Bitget and Bybit packing for Dubai and Hong Kong. Meanwhile, the UAE is sprinting ahead. With 50+ licensed crypto firms since 2022 and a market tipped to hit $4.5 billion by 2026, Dubai’s clear rules and tax perks are a magnet. The U.S. and UAE aren’t just crypto-friendly—they’re crypto-ambitious.
What’s Next?
This isn’t the endgame—there’s work to do. Education’s a hurdle, too: more than 70% of investors have not tried staking and I assume they don’t get staking in detail. We need to keep hammering home that it’s infrastructure, not a get-rich-quick scheme. Developers should pounce—build slicker protocols, better UX. Investors can jump in; staking’s 5-15% returns beat most bonds, and Wall Street’s warming up.
For me, this is personal. I’ve believed in crypto’s promise—decentralized, community-driven systems—since I first mined ETH on a clunky laptop. The SEC’s old stance threatened that vision. Now, it’s handing us a shot at the future. This isn’t just a ruling; it’s a call to action. For PoS networks, founders, and dreamers, the message is clear: build, stake, and seize this moment. The world’s watching, and the stakes—pun intended—couldn’t be higher.
Source: https://www.securities.io/the-secs-staking-decision-a-turning-point-for-crypto-and-why-it-matters/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
