The US Securities and Exchange Commission (SEC) has clarified that certain cryptocurrency liquid staking activities do not constitute securities offerings, a notable step in the agency’s ongoing effort to provide clearer guidance on digital asset regulation.

“The statement clarifies the division’s view that, depending on the facts and circumstances, the liquid staking activities covered in the statement do not involve the offer and sale of securities,” the regulator said Tuesday, referring to key sections of the Securities Act of 1933 and the Securities Exchange Act of 1934.

In its Staff Statement, the SEC defined liquid staking as the process of staking digital assets through a protocol and receiving a “liquid staking receipt token,” which serves as evidence of the staker’s ownership.

“Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction,” SEC Chair Paul Atkins said in a statement. 

The SEC’s clarification comes amid rising institutional interest in liquid staking exchange-traded funds (ETFs), with firms like Jito Labs, VanEck and Bitwise urging the agency to approve liquid staking strategies for Solana (SOL)-based funds.

Liquid staking has become one of the largest subsectors in crypto, with total value locked (TVL) nearing $67 billion across all protocols, according to DefiLlama. Ethereum alone accounts for $51 billion of that total.

Related: Crypto Biz: Digital gold rush intensifies as Tether Gold surges, institutions double down on BTC

SEC adopts pro-crypto approach under Paul Atkins

The announcement follows the SEC’s launch of Project Crypto — a sweeping initiative to overhaul the regulatory framework for cryptocurrency trading in the United States. As SEC Chair Paul Atkins noted last week, the project was developed in response to recommendations from the White House’s Working Group on Digital Assets

Since taking office, Atkins has led a more lenient approach to digital asset regulation, moving away from the agency’s prior “regulation by enforcement” stance under former Chair Gary Gensler. That shift included a May clarification that proof-of-stake protocols do not constitute securities transactions.

Under Atkins’ leadership, the SEC has also taken meaningful steps to ease regulatory burdens on cryptocurrency exchange-traded funds (ETFs).

Notably, on July 29, the agency approved in-kind creations and redemptions for Bitcoin (BTC) and Ether (ETH) ETFs, allowing authorized participants to exchange ETF shares directly for the underlying assets rather than cash.

The US crypto industry is also gaining momentum from sweeping policy reforms designed to make digital assets more accessible. These include the passage of the GENIUS Act, a landmark stablecoin bill, and House approval of market structure and anti-CBDC legislation ahead of the August recess.

Related: SEC ends ‘regulation through enforcement,’ calls tokenization ‘innovation’

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The Federal Deposit Insurance Corporation (FDIC) issued new guidance on March 28 clarifying that FDIC-supervised banks may engage in crypto-related activities without first obtaining the agency’s approval, provided they manage the associated risks by safety and soundness standards.

The announcement, published as Financial Institution Letter (FIL-7-2025), rescinds FIL-16-2022 and marks a significant policy shift for the agency. 

Acting Chairman Travis Hill stated:

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years. I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.”

The FDIC said it will continue working with the President’s Working Group on Financial Markets to issue additional guidance and coordinate with other regulatory agencies to replace prior interagency documents on digital assets.

The Executive Director of the Presidential Working Group on Digital Assets Markets, Bo Hines, called the decision “a huge step forward toward innovation and adoption.”

The agency’s decision reflects a broader effort to reset its approach to financial innovation. 

‘Pause’ letters

In recent years, several banks pursuing digital asset activities reportedly received informal “pause” letters instructing them to halt engagement with crypto services, including custody, tokenized deposits, and even basic retail crypto offerings.

Crypto industry figures said these decisions were a part of “Operation Chokepoint 2.0,” an alleged effort by former President Joe Biden’s administration to hinder the crypto industry’s growth in the US.

Hill has criticized the actions for lacking transparency and contributing to a perception that the FDIC discouraged innovation through non-public enforcement tactics.

In a January speech, he acknowledged that the agency had failed to offer banks clear public guidance, opting instead for ad hoc interventions. 

He cited the over 20 cases where banks had received letters asking them to stop or delay crypto-related activities without formal rulemaking or open comment periods.

Call to reevaluate

Hill emphasized that compliance with the Bank Secrecy Act should not be used as a pretext for denying access to banking services and called for a reevaluation of how the BSA is implemented across financial institutions.

Recent internal discussions at the FDIC haven reortedly focused on allowing banks to pursue tokenized deposit services and other blockchain-based financial infrastructure without unnecessary regulatory delays.

The move brings the FDIC into closer alignment with other regulators, such as the US Securities and Exchange Commission (SEC), which has begun formalizing crypto regulatory frameworks.

It also comes amid growing pressure from industry participants and lawmakers for banking regulators to provide a consistent, transparent roadmap for lawful crypto-related services.

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The US Securities and Exchange Commission (SEC) has clarified its stance on proof-of-work (PoW) mining, ruling that Bitcoin (BTC) mining activities do not fall under the definition of securities trading as per US law. 

This long-awaited statement provides essential clarity for crypto miners and the broader blockchain community, confirming that mining operations on public, permissionless networks are not subject to securities regulations.

A New Era For Bitcoin And Dogecoin Miners

The SEC’s decision is expected to have substantial implications for leading cryptocurrencies like Bitcoin and Dogecoin (DOGE), both of which rely on the PoW consensus mechanism to validate transactions and add new blocks to their respective blockchains.

In a statement issued on Thursday, the SEC’s Division of Corporation Finance addressed concerns regarding “Protocol Mining,” concluding that these activities do not involve the “offer and sale of securities” as defined under the Securities Act of 1933.

“It is the Division’s view that ‘Mining Activities’ do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act and Section 3(a)(10) of the Securities Exchange Act of 1934,” the SEC noted. 

This determination means that individual miners and mining pools engaged in these activities are not required to register transactions with the Commission under the Securities Act, nor do they need to fall within any exemptions from registration.

Trump Era Regulations

The SEC’s ruling is particularly important for miners who invest significant resources into computational power and energy costs to secure blockchain networks. 

The decision allows both solo miners and mining pools—where several miners combine their resources to increase their chances of earning rewards—to continue their operations without the burden of regulatory uncertainty.

While the SEC did not specify particular blockchains in its statement, the ruling effectively applies to major PoW networks like Bitcoin and Dogecoin. 

The Commodity Futures Trading Commission (CFTC) has previously classified these assets as commodities rather than securities, further solidifying the regulatory landscape for these cryptocurrencies.

This clarification comes amidst a shift in the regulatory environment under US President Donald Trump, who has positioned himself as a pro-crypto leader. 

Trump’s administration has aimed to make the US a global hub for blockchain and digital assets, establishing the Council of Advisers on Digital Assets to develop industry-friendly regulations. 

The SEC’s confirmation that PoW mining does not constitute securities dealing may bolster confidence among investors and miners alike, signaling a move towards clearer and more favorable regulations in the cryptocurrency space.

At the time of writing, Bitcoin trades at $83,875, recording losses of up to 13% in the monthly time frame. 

Featured image from Shutterstock chart from TradingView.com 

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