Some Liquid Staking Activities May Not Count as Securities: SEC

Key Points

1. The SEC clarified that some liquid staking activities do not qualify as securities under the Securities Act of 1933 and the Securities Exchange Act of 1934.

2. Liquid staking has become a major force in DeFi, with over $67 billion in total value locked, with Ethereum accounting for approximately $51 billion.

3. SEC Commissioner Caroline Crenshaw criticized the agency's statement, calling it speculative and unverified, while crypto-friendly Commissioner Hester Peirce supported the clarification.

4. The SEC has taken other pro-crypto actions, such as approving in-kind creations and redemptions for Bitcoin and Ethereum ETFs and clarifying that proof-of-stake mechanisms do not qualify as securities transactions.

5. The regulatory environment remains divided, with ongoing debates and pressure on the SEC to provide clearer crypto regulations.