Hoskinson Declares ADA Staking Non-Security Following SEC Liquid Staking Guidance

• 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 …

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