The U.S. Senate Banking Committee’s updated draft of the Crypto Market Structure Bill, part of the Responsible Financial Innovation Act of 2025, includes provisions that exempt staking, airdrops, and Decentralized Physical Infrastructure Networks (DePIN) from securities laws, provided no fraud is involved.
Specifically, Section 101 clarifies that staking, airdrops, and pre-existing tokens are not classified as securities, aiming to reduce regulatory uncertainty for crypto activities. Section 504 explicitly exempts DePIN projects, such as those supporting decentralized wireless networks or cloud storage, from securities regulations, as long as no single entity owns more than 20% of the tokens, ensuring decentralization.
The bill also introduces protections for DeFi developers and self-custody rights under Sections 501, 505, and 506, and establishes a Joint Advisory Committee between the SEC and CFTC (Sections 701-702) to harmonize regulatory oversight.
By explicitly exempting staking and airdrops from securities laws, the bill removes ambiguity around whether these activities fall under the SEC’s jurisdiction. This reduces the risk of enforcement actions against projects and participants, encouraging broader adoption of staking and airdrop mechanisms.
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Decentralized Physical Infrastructure Networks (DePIN), such as decentralized wireless or storage networks, are not treated as securities if no single entity controls over 20% of tokens. This fosters innovation in DePIN projects by lowering regulatory hurdles, allowing developers to focus on building decentralized infrastructure without fear of securities violations.
The exemptions signal a more crypto-friendly regulatory environment, particularly for DeFi developers (protected under Sections 501, 505, and 506). This could attract more developers and capital to U.S.-based DeFi and Web3 projects, as they face fewer legal risks.
By carving out DePIN from securities laws, the bill supports emerging use cases like decentralized cloud storage, IoT networks, and wireless connectivity, potentially positioning the U.S. as a leader in these technologies.
Codifying self-custody rights ensures users can securely hold their own crypto assets without relying on intermediaries, promoting decentralization and user empowerment. The establishment of a Joint Advisory Committee between the SEC and CFTC (Sections 701-702) aims to streamline crypto regulation.
This could shift some oversight from the SEC’s stringent securities framework to the CFTC’s lighter commodities-based approach, creating a more balanced regulatory landscape. Projects engaging in staking, airdrops, or DePIN activities will face less scrutiny from the SEC, reducing compliance costs and legal risks, though they must still avoid fraudulent practices.
With clearer rules, retail and institutional investors may feel more confident participating in staking and airdrops, potentially increasing liquidity and engagement in crypto markets. While the exemptions reduce regulatory burdens, the “no fraud” condition means projects must maintain transparency to avoid enforcement under other laws.
The exemptions could drive growth in token-based ecosystems, particularly for DePIN projects, as developers and businesses face fewer barriers to launching and scaling. The bill positions the U.S. as a more attractive hub for crypto innovation compared to jurisdictions with stricter regulations.
This could draw talent, capital, and projects to the U.S., countering the trend of companies moving offshore to avoid regulatory uncertainty. However, the 20% token ownership cap for DePIN projects may require careful structuring to ensure compliance, potentially complicating some business models.
The bill is still a draft, and its passage is not guaranteed. Political disagreements or amendments could alter its scope or delay adoption. Excluding staking, airdrops, and DePIN from securities laws may create gaps in investor protection, as these activities will face less stringent oversight.
This could lead to increased fraud or mismanagement if not paired with robust anti-fraud measures. Projects will need to ensure compliance with the “no single entity over 20% control” rule for DePIN and maintain transparency to avoid fraud accusations, which may require new governance or token distribution models.
Tokens tied to staking, airdrops, or DePIN projects may see increased demand due to reduced regulatory risks, potentially boosting their market value. With legal clarity, more traditional businesses may explore DeFi and DePIN integrations, accelerating mainstream adoption of decentralized technologies.
The bill could set a precedent for other jurisdictions, influencing global crypto regulation and encouraging similar exemptions elsewhere, these exemptions create a more favorable environment for crypto innovation, particularly for staking, airdrops, and DePIN, while reducing SEC oversight and promoting user autonomy.