SEC Says Liquid Staking and Receipt Tokens May Not Be Securities Under Certain Structures

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.