The post Cardano Staking Not a Security, Charles Hoskinson Claims appeared on BitcoinEthereumNews.com.

Charles Hoskinson affirms ADA staking doesn’t meet the Howey Test requirements Cardano’s native staking differs from liquid staking service provider models. SEC Project Crypto initiative drives new regulatory clarity for blockchain. Charles Hoskinson has asserted that Cardano’s ADA staking protocol is, under federal law, not a security. The Input Output CEO made the statement after the SEC’s Division of Corporation Finance released new guidance on liquid staking, which raised fresh concerns in the crypto community. The clarification comes amid the SEC’s broader Project Crypto initiative, which aims to modernize financial regulations to better align with blockchain-based technologies. The guidance distinguishes between different staking models and their regulatory implications for cryptocurrency owners. Native Staking Model Evades Securities Classification Cardano’s native staking system runs as part of the blockchain’s consensus layer. This enables ADA token holders to delegate tokens to staking pools without giving away ownership. This native process varies from liquid staking services using third-party intermediaries and receipt tokens for staked assets. The ADA delegation process enables users to earn rewards for their involvement in network security without surrendering ownership of their tokens. Stakers can freely withdraw or redelegate their tokens at their discretion without any restriction or penalty imposed by service providers. Hoskinson contends that indigenous ADA staking does not satisfy the Howey Test requirements since users do not invest in a shared enterprise in anticipation of returns from others’ work. Token holders, rather, directly engage in network consensus through delegation decisions and are rewarded for protocol security input. Liquid Staking Services Face Different Treatment The SEC guidance is directed at liquid staking arrangements in which staked assets are under service provider custody and receipt tokens are emitted as claims to future rewards. These arrangements may encompass profit expectations under service provider management and operating discretion. Legacy liquid staking platforms…

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Filed under: News - @ August 6, 2025 8:21 pm