The U.S. Securities and Exchange Commission's Division of Corporation Finance has clarified that participation in certain proof-of-stake (PoS) activities does not constitute a securities transaction and therefore does not require SEC registration. This guidance comes amid efforts to launch U.S. crypto exchange-traded funds (ETFs) offering staking rewards, which had faced regulatory uncertainties despite initial SEC registration approvals. Coinbase's Chief Legal Officer, Paul Grewal, affirmed that staking as a service is not a security, a stance now confirmed by SEC staff. However, the SEC's new guidance has drawn some internal criticism, including from former SEC enforcement chief John Reed Stark. The clarification aims to provide regulatory certainty for staking activities within the crypto sector, distinguishing them from traditional securities under U.S. law.