The recent policy shift by the U.S. Securities and Exchange Commission (SEC) has been met with optimism across the staking industry, including leading platforms such as HashStaking and GeekStake.

Last week, the SEC clarified that under specific conditions, liquid staking does not classify as a security. This means certain staking services — including those integrated into exchange-traded products (ETPs) — could operate without falling under the agency’s stricter securities regulations. For platforms like HashStaking and GeekStake, this could pave the way for wider adoption of staking through regulated investment products.

Both platforms already allow digital asset owners to stake cryptocurrencies like Ethereum and Solana to help validate blockchain transactions and, in return, earn rewards. The SEC’s updated stance offers potential opportunities for partnerships with financial institutions seeking to incorporate staking into compliant investment vehicles.

SEC Chairman Paul Akins called the move “a significant step forward” in clarifying which crypto asset activities fall outside the agency’s jurisdiction. Commissioner Hester Peirce also praised the development, noting that it supports innovation without unnecessary regulatory barriers.

Not all feedback was positive. Commissioner Caroline Crenshaw cautioned that the SEC’s position relies on numerous assumptions and may apply in very few real-world cases. She warned that platforms whose staking models differ from the specific scenarios outlined by the SEC could still face regulatory scrutiny.

HashStaking and GeekStake, however, have both positioned themselves with transparent operational models and strong compliance frameworks, making them well-placed to benefit from the shift.

Liquid staking has long addressed one of the key challenges in proof-of-stake networks: the lack of liquidity when assets are locked for staking. By issuing liquid staking tokens, platforms like HashStaking and GeekStake allow users to maintain flexibility, transfer assets more quickly, and explore additional DeFi opportunities while still earning staking rewards.

Still, concerns remain. Amanda Fischer, former SEC senior counsel and now policy director at Better Markets, warned that the ability to re-stake assets multiple times could amplify market risks. She noted that when liquid staking is combined with complex products like ETFs, it could create leverage-like conditions reminiscent of past financial crises.

For now, the SEC’s clarification gives staking providers such as HashStaking and GeekStake a stronger position in the market, but industry players will need to proceed cautiously as regulatory interpretations continue to evolve.