While speculative crypto trading gets much of the attention within and outside of the industry, staking is also a major way to earn money from cryptocurrency. Staking essentially involves locking away tokens for a period of time to earn interest and only applies to proof-of-stake-based tokens like Ethereum and Solana. Staking might not bring dramatic profits the way speculative trading does, but it is very low risk and offers a passive source of income.
Unsurprisingly, many crypto investors have taken to staking and are always looking for the best rates on different platforms. Many are on the lookout for the best crypto staking platform for whatever token they want to make money off and this is only going to become more popular over time. The best platform provides users a decentralized aggregator that pools the market’s highest APYs (annual percentage yield), offering the best staking options available.
Luckily for crypto staking lovers in the United States, the activity seems to be on decent ground from a regulatory standpoint. This comes as the Security and Exchange Commission announced in a statement from March 20, 2025, that proof-of-stake crypto activities don’t trigger federal securities law. There has been controversy in the past regarding which cryptocurrencies and crypto activities constitute the sale of a security. Notably, platforms like Gemini and Coinbase were charged by the SEC in the past for their staking programs which were deemed unregistered Securities.
While this caused controversy at the time, it seems the commission is having a change of heart. This clarification that staking activities do not constitute a sale of securities means that platforms that offer staking services don't need to register with the Securities and Exchange Commission. This was the bone of contention with the aforementioned companies as they were accused of not registering duly before offering these services.
“Accordingly, it is the Division’s view that participants in Mining Activities do not need to register transactions with the Commission under the Securities Act or fall within one of the Securities Act’s exemptions from registration in connection with these Mining Activities,” the official statement said.
As was explained, staking does not pass the Howey Test, which is a framework used to determine whether an asset is a security or not. This not only offers some current reassurance for companies in the crypto space but also offers concrete guidance moving forward. One of the biggest issues for new entrants into the crypto space is how exactly to engage with the regulators.
But with this statement from the SEC, staking service operators know definitively what their legal limits and requirements are. It's interesting that this development is happening now as the SEC has seen a turnaround in its treatment of the crypto sector.
For years, the two had an antagonistic relationship, with some of the biggest companies in the space being taken to court for alleged use of unregistered securities. These included Binance, Coinbase, Gemini, Ripple Labs, and so on. Now, with current US President Donald Trump in office, the SEC seems to be taking a less combative approach to the crypto sector. After former chair Gary Gensler exited his position, the SEC dropped lawsuits against several companies including Coinbase and Ripple Labs. Just recently, Trump stated that his priority was undoing what he called a witch hunt against the crypto industry that took place over the last few years.
Now, this declaration reduces the chance of any incoming legal action against other crypto companies. More than that, it signals to the wider markets that the United States is ready to embrace cryptocurrency-related activities, at least for the next four years, and offers a regulatory foundation for other countries to follow.
