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Comparative Guide: Regulating Staking

27 January 2025

In our latest Comparative Guide, we give a brief overview of staking services, and relevant regulatory considerations.

What is happening?

Many of the largest blockchain networks today are subject to a proof-of-stake (PoS) consensus mechanism, such as Ethereum, Solana, and Polygon, which are reliant on users participating in the activity of staking in order to validate transactions, maintain consensus, and ensure the security and integrity of the network.

Accordingly, as consumer engagement in cryptoassets continued to rise over the course of 2024, so has there been a growing adoption of staking — from a UK perspective, this is reflected in the FCA’s latest consumer research published in November 2024. We are also witnessing rising institutional interest in offering staking services to clients (e.g. as part of a bundle of services related to cryptoassets).

Why it matters

As new technologies and services may present new types of risk, regulators and policymakers are increasingly turning their attention to staking services.

Currently, in the vast majority of jurisdictions around the world, staking does not explicitly fall within scope of cryptoasset or financial services regulation. This guide aims to give a brief overview of staking services and relevant regulatory considerations.

For more information, please contact a member of the team or visit the Hogan Lovells Digital Assets and Blockchain Hub.

For more of our guides, see also: