Consensus 2025
23:01:32:42
The Breakdown With NLW Episode

A Legal Argument for Why Staking Doesn’t Make ETH a Security

Staking ether fails to meet at least two prongs of the Howey test, according to the authors.

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ABOUT

This episode is sponsored by Nexo.io, Circle and FTX US.

On this week’s “Long Reads Sunday,” NLW reads “Ethereum's New ‘Staking’ Model Does Not Make ETH A Security.” The piece was authored by:

  • Rodrigo Seira, crypto counsel at Paradigm
  • Amy Aixi Zhang, policy counsel at Paradigm
  • Jake Chervinsky, head of policy at the Blockchain Association, adviser at Variant Fund and board member at DeFi Education Fund

See also: Weekend Explainer | Crypto Staking 101: What Is Staking?

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Eleanor Pahl and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “The Now” by Aaron Sprinkle and “The Life We Had” by Moments. Image credit: Jason marz/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

HOST

Nathaniel Whittemore

NLW is an independent strategy and communications consultant for leading crypto companies as well as host of The Breakdown – the fastest-growing podcast in crypto. Whittemore has been a VC with Learn Capital, was on the founding team of Change.org, and founded a program design center at his alma mater Northwestern University that helped inspire the largest donation in the school’s history.

Nathaniel Whittemore