Officials from the US Securities and Exchange Commission (SEC) recently met with representatives from Payward, Inc., the operator of the crypto exchange Kraken, to discuss key issues related to tokenization and staking. The SEC initiated this meeting following several high-level roundtables and new guidelines that emphasize the agency's efforts to clarify its position on crypto assets in the United States.
Based on the SEC meeting memo dated May 29, 2025, the SEC’s Crypto Task Force staff held a conversation with Kraken representatives to discuss new guidelines for regulating crypto assets. Some of the main discussions centered on tokenizing assets from traditional finance and providing staking as a service. During the talks, an analysis was conducted on how other countries are supporting tokenization and what the SEC could do to facilitate similar changes in the U.S.
The SEC also sought detailed input on various staking models and their respective benefits to the digital asset ecosystem, as well as how its existing authority could provide clearer guidance for businesses offering staking services. The agenda included contributions from Payward’s senior regulatory and policy leaders.
This latest engagement follows the SEC’s fourth public roundtable, “Tokenization – Moving Assets Onchain: Where TradFi and DeFi Meet,” which convened a broad range of stakeholders, including financial institutions, decentralized finance (DeFi) platforms, and legal experts. Participants broadly agreed that tokenization—a process in which real-world financial instruments, such as stocks and bonds, are recorded on blockchains—offers potential benefits, including real-time settlement, increased transparency, and expanded market access.
In his keynote address, SEC Chairman Paul Atkins highlighted the agency’s intent to move away from “regulation through enforcement” and toward a framework of clear, sensible rules for the issuance, custody, and trading of crypto assets. He also emphasized the importance of striking a balance between innovation and safeguards to ensure investor protection and market integrity.
In addition, on the same day, the SEC clarified staking activities as part of its new staff guidance. According to the guidance, most cases where tokens are staked to support a network’s agreement process are exempt from federal securities laws as long as rules are met. The document noted that while protocol staking is generally non-custodial, certain staking methods, such as liquid staking, may still be regulated as securities.
However, the guidance also emphasized that these views are non-binding and reflect only the opinions of SEC staff. SEC Commissioner Caroline Crenshaw issued a dissent, arguing the new approach contradicts established court precedent and does not provide enough regulatory certainty.
Recently, the SEC announced that it is dropping its lawsuit against Binance and its founder for collaborating with the Crypto Task Force in developing its regulatory strategy. Members of the financial industry, including global think tanks, have preferred the SEC’s more transparent and consultative approach but stress the need for binding rules rather than non-binding staff guidance.
According to SEC Commissioner Hester Peirce, although crypto assets differ significantly from securities, they may be treated as securities based on their specific transactions. The SEC plans to prepare its first report on cryptocurrency regulations in the upcoming months and will hold additional roundtable sessions.
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