The SEC is taking a closer look at crypto staking, asking industry players for detailed explanations on how it works and what benefits it offers. According to Fox Business’ Eleanor Terrett, the agency is “very, very interested” and could soon release official guidance on staking.
“My source expects to see some kind of agency guidance on staking in the near future as it’s a topic they’re engaging enthusiastically on,” said Eleanor.
SEC drops legal fight over DeFi crackdown
The staking interest is part of the SEC’s transformation into pro-crypto under President Donald Trump. On Wednesday, the SEC unexpectedly dropped its appeal in a major DeFi case against the Blockchain Association and CFAT. The agency had been trying to expand securities laws to cover DeFi users and projects, but a Texas federal judge ruled that its efforts exceeded its authority.
In November 2024, the court found that the SEC’s attempt to redefine the term “dealer” was unlawful. The agency had tried to argue that DeFi traders should be classified as financial brokers, but the judge rejected that claim.
With its four-page motion filed in the U.S. Court of Appeals for the Fifth Circuit, the SEC formally withdrew the appeal, and no one challenged the decision. Kristin Smith, CEO of the Blockchain Association, called the withdrawal a “major win” for the industry.
“We first brought our lawsuit against the SEC to challenge the agency’s unlawful power grab, which sought to unilaterally redefine the boundaries of its statutory authority,” Kristin said. “With new leadership at the agency leading to today’s final dismissal, we’re looking forward to productive conversations between industry and the SEC moving forward.”
The controversial dealer rule was first introduced a year ago and immediately faced backlash. SEC Commissioner Hester Peirce, a longtime crypto advocate, was one of its strongest critics. She warned that the new rule would “distort market behavior and degrade market quality.”
In February 2025, the SEC launched a Crypto Task Force to clarify regulations around digital assets. The agency is now looking at how staking programs fit within existing laws. The big question is whether staking services could be classified as unregistered securities offerings.
One major development came on February 18, when the SEC acknowledged a Cboe filing for a staking mechanism in an Ethereum ETF. The 21Shares Core Ethereum ETF proposal could open the door for staking in regulated investment products, something the agency had previously blocked over investor protection concerns.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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