The U.S. Securities and Exchange Commission (SEC) has issued crucial guidance indicating that certain liquid staking services do not constitute securities under federal law. This regulatory clarification reduces hurdles for Ethereum exchange-traded funds (ETFs) and may accelerate their approval process while enhancing digital asset market liquidity.
Key liquid staking tokens including stETH and JITOSOL received explicit exemption from securities classification. Major providers such as Rocket Pool and Lido will consequently avoid mandatory SEC registration requirements under this updated framework.
SEC Chair Paul Atkins publicly endorsed the clarification, noting alignment with broader regulatory initiatives including ‘Project Crypto’. Market analysts anticipate the guidance will streamline Ethereum ETF authorizations, potentially boosting institutional participation and overall market efficiency.