The distinction regulators draw often hinges on custodial risk and expectation of yield. Staking protocols like Lido and Rocket Pool operate closer to infrastructure, with ETH staking framed as network participation rather than lending. In contrast, services like Aave or Nexo resemble traditional finance models with pooled risk and direct interest payouts, which attract securities scrutiny.
Jurisdictionally, the EU’s MiCA seems to lean friendlier toward decentralized staking, while the US maintains ambiguity, especially post-Coinbase Earn enforcement. Singapore and Switzerland offer more clarity, generally favoring staking as long as it avoids custodial concentration. Lending protocols, however, face more friction in most major markets due to consumer protection frameworks. A comparative list by activity type and jurisdiction would add significant value to the discussion.
