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New SEC Guidelines: Staked ETH Receipt Tokens Do Not Constitute Securities, Provided They Are Purely 'Receipts'

On September 26, according to BeInCrypto, the U.S. SEC's Division of Corporation Finance released new guidelines clarifying that tokens received from staking Ethereum do not constitute securities, provided their function is purely as 'receipts'. The document states that when tokens are backed by 'digital commodities', staked receipt tokens are considered 'digital tools'; the SEC and CFTC listed 16 types of digital commodities in a clarification document on March 17, including Ethereum (ETH). The guidelines set conditions: tokens must not alter the rights associated with the staked ETH or provide additional rewards, and service providers must not lend, stake, or reuse the deposited tokens; this contrasts with Kraken's $30 million fine in 2023 for promoting yield and shutting down its staking services in the U.S. The document also covers buybacks: announcing a buyback when the network is operational does not constitute a commitment that would turn the tokens into securities; however, it may still constitute one if the network is not yet complete.

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