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US SEC says certain liquid staking activities fall outside of securities laws

2025-08-05 18:41:16

Main Idea

The US SEC clarifies that certain crypto liquid staking activities fall outside of securities regulations, marking a shift towards a more pro-crypto approach under Chair Paul Atkins.

Key Points

1. The SEC defines liquid staking as the process involving a 'receipt token' that serves as evidence of the staker’s ownership.

2. Liquid staking is a significant subsector in crypto, with a total value locked (TVL) nearing $67 billion across all protocols, with Ethereum accounting for $51 billion.

3. The SEC's clarification follows the launch of Project Crypto, aimed at improving crypto regulation and moving away from the prior 'regulation by enforcement' stance.

4. Under Atkins’ leadership, the SEC has approved in-kind creations and redemptions for Bitcoin and Ether ETFs, allowing alternatives to cash.

5. The US crypto industry is benefiting from policy reforms, including the GENIUS Act and House approval of market structure and anti-CBDC legislation.

Description

In a new staff statement, the SEC clarifies that certain crypto liquid staking practices do not constitute securities offerings, marking a step toward clearer digital asset regulation.

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