SEC Clarifies Rules for Staking Tokens and Functional Networks

The US Securities and Exchange Commission (SEC) has released new guidance on how to classify certain types of cryptocurrency assets, including staking receipt tokens and functional networks.

The guidance clarifies that some crypto activities may not create investment contracts under existing federal securities laws. This means that digital assets can operate as commodities rather than securities in certain situations.

The SEC staff evaluated different types of crypto assets and network activities, focusing on whether specific actions involve ongoing managerial efforts linked to investment expectations.

The guidance addresses staking receipt tokens issued through blockchain-based staking services, which can represent ownership of underlying digital assets. The SEC staff said some staking receipt tokens may function as digital commodities rather than securities.