How to legally stake crypto in 2025 under the SEC’s new rules

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Key Highlights from the SEC’s 2025 Crypto Staking Guidelines

Staking Not a Security: The SEC confirmed that solo, delegated, and custodial staking tied to network consensus are not considered securities offerings.

Rewards = Compensation: Staking rewards are treated as payment for services, not profits from others’ efforts, and don’t meet the Howey test criteria.

Clarity for Participants: Validators, node operators, and stakers can now operate with legal certainty, boosting adoption of proof-of-stake (PoS) networks.

Risky Schemes Still Restricted: Yield farming, ROI-guaranteed DeFi bundles, and disguised lending under "staking" remain potentially unlawful.

What’s Allowed Under SEC’s Rules

Solo Staking: Individuals using their own infrastructure can stake crypto directly.

Delegated Staking: Users can delegate to third-party validators while keeping asset control.

Custodial Staking: Platforms can stake on behalf of users with clear disclosures and separate accounts.

Validator Operations: Running nodes is seen as technical work, not an investment.

Permitted Ancillary Services

Slashing coverage

Early unbonding

Flexible reward timing

Asset aggregation

These are allowed as long as they’re administrative, not investment-driven.

Who Benefits

Validators & Node Operators: Can now earn rewards without regulatory risk.

Developers: PoS staking recognized as legitimate network function.

Exchanges: Can offer staking services if compliant.

Investors: Retail and institutional players gain more confidence to stake.

Still Restricted

Yield Farming & Non-Consensus Pools: Considered securities.

Guaranteed-Return Products: Risk SEC scrutiny.

Staking-as-a-Front for Lending: Not covered by the new guidance.

Bitcoin Staking with Babylon (via Kraken)

No wrapping or lending — BTC stays on-chain.

BTC is time-locked to secure PoS networks.

Rewards (up to 1% APR) paid in BABY token.

Available on Kraken in select regions.

Best Practices for Legal Staking (2025)

Participate in consensus-based staking only.

Disclose custodial terms and avoid lending.

Don’t offer fixed returns.

Use clear contracts and disclosures.

Get legal advice before launching services.

The 2025 SEC guidelines mark a major step toward regulatory clarity for staking, encouraging growth while keeping speculative schemes in check.