SEC Clarifies Rules for Crypto Airdrops and Staking in Joint Guidance with CFTC

The US SEC and CFTC have released joint interpretive guidance to clarify the application of federal securities laws to cryptocurrency activities like airdrops and staking, aiming to reduce market uncertainty. The guidance distinguishes that while a crypto token itself is usually not a security, its offering or use can trigger securities regulation. For airdrops, tokens distributed freely without promises of profit are less likely to be securities, but if used to promote investment, they may qualify as investment contracts. Similarly, staking is not automatically regulated; if users lock tokens to support a network for protocol rewards, it might be exempt, but if a third party pools funds promising returns based on its efforts, it could be deemed a security offering. The agencies also introduced a broader classification system for digital assets to determine regulatory oversight and acknowledged that a token's classification can change over time.

(Source：BeInCrypto)