Buried inside the SEC’s March 2026 crypto guidance — past the taxonomy and the investment contract framework — is a section that answers some of the most practically urgent questions for anyone operating in blockchain infrastructure. The short version: four major crypto activities are not securities transactions, provided they meet specified conditions.

Here’s what each activity is and what the guidance says about it.

Protocol Mining

Mining is the process by which participants use computing power to solve complex mathematical problems, validate transactions on a proof-of-work network, and earn rewards for doing so. Miners can operate solo or pool their computational resources with others.

The SEC’s position: Protocol mining does not constitute a securities transaction. Whether you’re solo mining or part of a pool, you’re performing a computational service, not participating in an investment contract.

This aligns with the long-standing treatment of Bitcoin mining and extends that logic to mining activities more broadly.

Protocol Staking

Staking involves depositing crypto-assets into a protocol to participate in transaction validation on proof-of-stake networks, earning rewards in return. It can take various forms — solo staking, delegation, or staking through a third-party custodian.

The SEC’s position: Protocol staking arrangements do not constitute securities transactions, subject to specified conditions.

This resolves a question that had lingered over staking-as-a-service providers. The prior enforcement environment under the Biden-era SEC was unfriendly to custodial staking products — the agency sued Kraken over its staking service in 2023. The new guidance signals a different approach.

Wrapping

Wrapping is the process of depositing one crypto-asset with a custodian or smart contract, which generates a corresponding asset on a different blockchain network. The wrapped asset can be redeemed for the original. Wrapped Bitcoin (WBTC) is the most prominent example, allowing Bitcoin to be used on Ethereum-based DeFi protocols.

The SEC’s position: Offering crypto wrapping services for non-security crypto-assets does not constitute a securities transaction, subject to specified conditions.

The “non-security crypto-asset” qualifier matters here. Wrapping a digital commodity is clear. Wrapping an asset that is itself a security — or that is currently “subject to” an investment contract — would be a different analysis.

Airdrops

Airdrops are distributions of crypto-assets for no consideration or nominal consideration. Issuers use them to generate interest in a new project, reward early users, or bootstrap adoption.

The SEC’s position: Airdrops do not constitute securities transactions, subject to specified conditions.

The conditions are worth watching. Prior SEC guidance had flagged certain airdrops as potentially constituting unregistered securities offerings if they were part of a scheme to distribute tokens that were themselves investment contracts. The new guidance draws a cleaner line, though the specifics will determine how cleanly a given airdrop qualifies.

What “Subject to Specified Conditions” Means

The guidance uses this phrase consistently across all four activities. The CRS analysis of the guidance notes the conditions without listing them exhaustively — the full detail is in the guidance itself. The implication for operators: these safe harbors are real but not unconditional. Review the conditions specific to your activity type before treating the guidance as blanket clearance.

The Bigger Picture

Together, these four clarifications cover a significant portion of the activity that underlies blockchain infrastructure and DeFi. Miners, validators, bridge operators, and airdrop campaigns now have clearer regulatory footing than at any point in recent memory. That’s a meaningful development for the sector — even if the conditions attached to each safe harbor mean that legal review remains essential.

Source: Congressional Research Service Legal Sidebar LSB11415, “SEC Issues Crypto Guidance as Congress Considers Market-Structure Legislation,” April 3, 2026.