Key dealers
- Sec clarified that the protocol on POS networks is not considered a securities offer.
- Setting activities and related services is classified as administrative or ministerial rather than entrepreneurs.
The US SEC has made it clear that certain protocol production activities on Proof-of-Stake (POS) networks do not constitute securities offers under the federal law.
On one statement The division of the SEC Division of Corporation Finance on May 29, said the division that the participants in the protocol who stakes operations do not need to register transactions to the Commission under the Securities Act or qualify for exemptions from the registration requirements.
This guidance covers three types of intervention activities: self (or solo) Staking, where nod operators invest their own crypto assets, self -confidence is investing directly with third parties and storage arrangements where a custodian on behalf of asset owners.
The division stipulated that fussing rewards are “payments to the node operator in exchange for the services it provides to the network rather than profits derived from other people’s or management efforts.”
For custody arrangements, the SEC noted that “the custodian does not decide whether or how much of an owner’s covered crypto assets to invest. The storage simply acts as an agent in connection with the deposited covered crypto assets on behalf of the owner.”
The guidance also deals with associated striking services such as cutting coverage, early unbound, alternative reward schedules and asset aggregation, which decides that these are “administrative or ministerial” rather than entrepreneurial or management activities.
SEC’s Crypto Task Force has actively involved in the industry through a series of round table discussions that are focused on various important regulatory issues in the crypto sector, including installation.
Earlier this month, the Blackrock met the working group to discuss regulatory issues, staggering capacity and trade in alternatives on the crypto -etfs.
A group of large crypto companies, led by the Crypto Council for Innovation and the proof of Stake Alliance (POSA), recently urged Sec to clarify that the effort is not an investment activity and should not be regulated as a security.
