The U.S. Securities and Exchange Commission (SEC) has provided regulatory guidance indicating that certain liquid staking protocols and their associated receipt tokens may not qualify as securities under federal law. This announcement delivers long-sought clarity for the cryptocurrency sector amid ongoing debates about digital asset oversight.
The guidance falls under Project Crypto, the SEC’s initiative to develop tailored regulatory frameworks for emerging blockchain technologies. By potentially exempting liquid staking tokens from securities classification, the decision removes significant legal uncertainty for decentralized finance (DeFi) developers and service providers. Industry analysts note this could accelerate adoption by enabling protocols to operate without securities registration requirements.
The move is expected to facilitate growth across liquid staking services, which allow users to earn rewards while maintaining liquidity through tradable tokens representing staked assets. Despite the regulatory milestone, broader market reaction remains muted, with Bitcoin trading at approximately $113,372 at the time of the announcement, down 1.46% over the previous 24 hours.