Silver Spring, Maryland--(Newsfile Corp. - April 22, 2025) - BTCS Inc. (NASDAQ: BTCS) ("BTCS" or the "Company"), a blockchain technology-focused company, today announced that the U.S. Securities and Exchange Commission (the "SEC") has formally terminated its investigation into the Company and no enforcement action has been recommended.

The investigation concerned whether non-custodial staking activities and the operation of validator node software could be classified as securities offerings under federal securities laws.

This expansive interpretation was unsupported by congressional mandate and impossible to comply with from a technical perspective. That novel approach raised significant questions and concerns about the appropriate regulatory framework for decentralized technology development and the scope of existing securities laws.

"We are pleased to close this chapter and are encouraged by the current administration's measured approach toward digital assets," stated Charles Allen, Chief Executive Officer of BTCS. "The prior regulatory agenda sought to apply rules never enacted by Congress, undermining the foundational principles of open-source development and harming American innovation. Had such efforts succeeded, any American who simply downloaded and ran open-source validation software on their computer would have been considered an issuer of securities-subject to the burdensome requirement of registering those securities with the SEC under federal law."

The SEC's decision aligns with recent bipartisan legislative developments such as Kentucky's unanimous passage of House Bill 701, which explicitly exempts staking and node operations from securities and money transmitter laws.

Michael Prevoznik, Chief Financial Officer of BTCS, commented: "This ruling brings long-overdue clarity. We're pleased to put this matter behind us and look forward to focusing our full attention on scalable, compliant blockchain infrastructure solutions. This resolution allows us to concentrate on delivering value to our shareholders and advancing blockchain technology."

Allen added, "We appreciate the current regulatory environment that promotes innovation while ensuring compliance. Moving forward, we remain committed to working constructively with regulators while continuing to serve the interests of our more than 30,000 shareholders."

About BTCS:

BTCS Inc. (NASDAQ: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its blockchain infrastructure operations. BTCS has honed its expertise in blockchain network operations, particularly in block building and validator node management. Its branded block-building operation, Builder+, leverages advanced algorithms to optimize block construction for on-chain validation, thus maximizing gas fee revenues. BTCS also supports other blockchain networks by operating validator nodes and staking its crypto assets across multiple proof-of-stake networks, allowing crypto holders to delegate assets to BTCS-managed nodes. In addition, the Company has developed ChainQ, an AI-powered blockchain data analytics platform, which enhances user access and engagement within the blockchain ecosystem. Committed to innovation and adaptability, BTCS is strategically positioned to expand its blockchain operations and infrastructure beyond Ethereum as the ecosystem evolves. Explore how BTCS is revolutionizing blockchain infrastructure in the public markets by visiting www.btcs.com.

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