The U.S. Securities and Exchange Commission’s Division of Corporation Finance clarified its view on Thursday evening that certain proof-of-stake blockchain protocol “staking” activities are not securities transactions within the scope of federal securities laws.
And the announcement drew commentary from leaders in the digital asset space on Friday, including Paul Grewal, the chief legal officer at Coinbase. Grewal said that the guidance should send a message to states that sent cease-and-desist orders targeting and preventing the crypto exchange from staking new assets for users.