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Staking Regulation

Definition

Staking regulation involves rules governing the process of locking up crypto assets to support a network. These are legal and administrative frameworks that apply to the act of committing digital assets to a blockchain protocol to validate transactions and earn rewards. Regulatory discussions often focus on whether staking services offered by centralized entities constitute a security offering or a form of investment contract. Such regulations aim to protect participants, ensure market fairness, and address potential systemic risks associated with large-scale staking operations.