SEC Says Liquid Staking and Receipt Tokens May Not Be Securities Under Certain Structures
Main Idea
The SEC clarified that liquid staking and receipt tokens may not be classified as securities under specific conditions, and announced the 'Project Crypto' initiative to support crypto innovation in the U.S.
Key Points
1. The SEC stated that liquid staking and receipt tokens may not be securities if they meet certain conditions, focusing on the role of the provider under the Howey Test.
2. Receipt tokens do not independently generate rewards; their value is derived from the underlying staked assets, but deviations from the framework could still trigger securities regulations.
3. SEC Chairman Paul Atkins announced 'Project Crypto' to promote on-chain financial markets and encourage crypto innovation within the U.S.
4. The initiative aims to establish regulatory frameworks for digital asset trading and bring crypto innovators back to the U.S.
Description
The U.S. Securities and Exchange Commission’s Division of Corporation Finance published a detailed statement on Tuesday clarifying its views on “liquid staking,” a type of crypto protocol staking where users receive newly minted tokens representing staked assets. In a statement, the SEC said the guidance seeks to help crypto participants understand whether these arrangements fall under U.S. securities laws. BREAKING from @SECGov : Liquid staking activities and tokens are not considered securitie...
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