The UK Treasury has made an important announcement regarding crypto staking. It has confirmed that staking will not be classified as a “collective investment scheme” (CIS), a category that includes investment funds and ETFs. This is a big relief for people involved in staking, especially within networks like Ethereum and Solana, as it means they won’t face the same heavy regulations as traditional investment funds.
On January 8, 2025, the UK Treasury confirmed that crypto staking—where tokens are locked to help secure and validate blockchain transactions—will not be treated as a collective investment scheme. This means staking won’t be regulated like investment funds, which face strict oversight. The new rules will take effect on January 31, 2025.
Why this matters
The decision has been widely welcomed within the crypto community. Bill Hughes from ConsenSys explained that staking is more about securing the network than generating profits.
Unlike collective investment schemes, which pool money to make profits, staking rewards users for helping secure the blockchain by locking up their tokens.
This change is part of the UK’s broader effort to create clear and fair regulations for crypto. However, the government aims to ensure crypto services can operate without confusion while staying compliant with laws.
Economic Secretary Tulip Siddiq noted that staking services shouldn’t be treated the same as investment funds.
While staking now has clearer rules, the UK is also working on other regulations for crypto, such as for stablecoins and NFTs. The goal is to provide a framework that helps crypto grow while ensuring businesses follow necessary legal standards.
With staking now firmly separated from investment fund rules, the UK is paving the way for a more balanced regulatory environment.
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