SEC Clears Path for Liquid Staking, Igniting Institutional Interest

Key Points

1. The U.S. Securities and Exchange Commission (SEC) announced the first Project Crypto directive on August 5, 2025, clarifying that liquid staking tokens are not securities.

2. ZIGChain co-founder Abdul Rafay Gadit believes the SEC’s announcement opens new opportunities for institutional capital in crypto through liquid staking altcoins.

3. Marcin Kazmierczak, co-founder of RedStone, describes the SEC’s stance as a milestone for Ethereum-based liquid staking, aligning with blockchain’s core principles.

4. The total value locked (TVL) in liquid staking surged from $31.14 billion to $71.16 billion in 2024, with expectations of further growth following the SEC’s approval.

5. As of August 5, 2025, 33.8 million ETH (28% of the supply) was staked on Ethereum, with the overall staking market exceeding $60 billion.