Weekly Recap: SEC Says Staking Activities Aren't Securities Transactions

Happy weekend Defiers!

Crypto markets took a breather this week after seven straight weeks of gains, with Bitcoin dropping roughly 5% to $104,000.

On Thursday, the SEC said that staking cryptocurrencies on proof-of-stake blockchains like Ethereum and Solana does not violate U.S. securities laws, giving a green light for institutional investors to participate.

A growing number of corporations seek to emulate Michael Saylor’s treasury strategy, with Trump Media unveiling plans to raise $2.5B to buy Bitcoin and GameStop buying nearly $500M of BTC this week. Meanwhile, SharpLink plans to buy $1B of ETH, and VivoPower and Webus aim to accumulate over $400M of XRP.

The Ethereum Foundation borrowed $2M against ETH on Aave for operating expenses. The move signals that the EF may turn to DeFi for funding instead of selling its ETH. Ether has been outperforming since the network’s Pectra upgrade earlier this month.

Also on the regulation front, U.S. lawmakers unveiled the CLARITY Act, which would grant the CFTC broad authority over the industry.

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Top stories this week

Bitcoin Plunges Under $104,000 As US-China Trade Tensions Resurface

Early on Friday, U.S. President Trump accused China of violating the current trade agreement between the two countries. Combined with Treasury Secretary Scott Bessent’s admission on Thursday that trade talks are “a bit stalled,” fears of a drawn-out trade war sparked a selloff across global markets.

Bitcoin slipped below $104,000, while ETH and XRP dropped by 4%. SOL plunged 6% to $159.

SEC Says Staking Activities Are Not Securities Transactions, Opening the Door for Institutions and ETFs

With a letter confirming that protocol staking activities are not securities transactions, the SEC has sent a clear message to traditional financial institutions and fintechs that they can get in the game.

Proof-of-stake blockchains, such as Ethereum and Solana, are set to be the major beneficiaries, along with companies seeking SEC approval for exchange-traded funds (ETFs) that stake assets like ETH and SOL.

Trump Media Confirms Multi-Billion Dollar Bitcoin Treasury

It is now confirmed that President Donald Trump’s media company, Trump Media, will be officially buying Bitcoin, starting with a $2.5 billion haul.

Also this week, SharpLink unveiled plans to buy $425M of ETH, while international companies are betting on XRP.

Ethereum Foundation Moves Deeper Into DeFi with $2 Million GHO Loan

The EF has caught flak for funding its day-to-day operations by selling ETH. With a $2 million loan on Aave, it may be turning to DeFi borrowing to replace those sales.

Meanwhile, ETH has been outperforming since Ethereum’s Pectra upgrade.

U.S. Lawmakers Unveil CLARITY Act Regulating Digital Assets

The CLARITY Act of 2025 grants the CFTC broad authority over most crypto assets, significantly reducing the SEC’s role.

“Market participants will have a trusted pathway to trade digital commodities through intermediaries and exchanges overseen by the CFTC,” a summary of the bill reads. There will be “comprehensive registration regimes to permit digital asset firms to lawfully serve customers in digital asset markets.”

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