A pivotal shift is underway in U.S. crypto regulation, and it’s good news for staking. On May 19th, SEC Commissioner Hester Peirce, head of the U.S. Crypto Task Force, directly addressed staking in a landmark speech that signals long-awaited regulatory clarity for institutional participants. For the first time, a senior SEC official has clearly acknowledged that technical participation in proof-of-stake (PoS) and delegated proof-of-stake (DPoS) systems does not inherently fall under securities laws.
This moment matters: it unlocks a path for U.S. institutions to engage in staking without fear of enforcement actions, aligns with industry calls for clear rules, and establishes Commissioner Peirce as a key driver of a more constructive regulatory approach.
Figment is extremely encouraged by Commissioner Hester Peirce’s speech, New Paradigm: Remarks at SEC Speaks (May 19, 2025). This marks a major step forward for staking in the United Stakes.
Commissioner Peirce addressed staking directly:
“I support the issuance of further guidance to identify activities that are not covered by the securities laws, including on, for example, direct participation in proof-of-stake and delegated proof-of-stake systems and the technical nature of services that assist people seeking to participate in these consensus mechanisms.”
Why does this matter to U.S. institutions?
- Technical participation in both DPoS (Solana) and PoS (Ethereum) staking falls outside the scope of securities law. This provides long-sought clarity to U.S. institutions that they are not violating securities laws by staking.
- Shift away from regulation by enforcement. Acknowledgement that this approach failed to prevent fraud and only created confusion for compliant operators. This is the policy shift we were hoping for from the SEC.
- A forward-looking framework includes a safe harbor for early-stage assets, tailored registration paths for token projects, and clearer rules for secondary market activity. In particular, the proposed conditional safe harbor would allow new networks to launch and mature over time under defined disclosure and investor protection standards. We view this as a path for new projects to come to market in a compliant way, expanding the range and quality of networks we can support.
Summary of key themes from Commissioner Peirce’s speech:
- Acknowledgement that most crypto assets are not securities under U.S. securities law. There’s no promise to generate value in exchange for voting or economic rights in a centralized entity.
- Admission that the SEC’s previous approach failed to provide clarity for good actors and failed to prevent bad ones.
- A marked shift from punitive enforcement toward constructive guidance.
- Commissioner Peirce argues that meme coins, lacking economic rights, do not qualify as securities under current law.
- The Crypto Task Force is pushing for more guidance, rulemaking, and safe harbor provisions, hallmarks of Commissioner Peirce’s leadership, to help developers, traders, and investors understand when securities laws apply.
Context for this speech: Congressional Activity
- The Senate appears poised to pass the GENIUS Act, led by Senator Hagerty, which would create the first U.S. regulatory framework for stablecoins.
- Commissioner Peirce calls on Congress multiple times, especially for further clarification on what constitutes an “investment contract.”
- It’s increasingly clear that Commissioner Peirce can help educate Congress in developing thoughtful crypto legislation, not just regulatory guidance, in alignment with the President’s crypto directive.
Conclusion
Commissioner Peirce’s remarks signal a turning point: staking, when done in a technical, non-custodial capacity, is not a securities activity, and institutions now have a public signal of support from the SEC’s own Crypto Task Force.
At Figment, we’ve long advocated for policy frameworks that recognize the technical nature of staking infrastructure. We believe this speech validates that position and opens the door for broader institutional adoption in the U.S.
We’ll continue to support our partners in navigating this evolving regulatory landscape, and we’re here to help institutions launch secure, compliant staking operations with confidence.
Figment is actively working with US institutions to launch staking this year, preparing for this clarity. Onward and upward.
