SEC Commissioner Hester Crenshaw has criticized a recent memo on liquid staking, emphasizing that its conclusions do not align with real market conditions.
Content of the Liquid Staking Memo
The SEC memo, released this week, presents several assumptions about how liquid staking operates. According to Crenshaw, these assumptions do not reflect reality and fail to capture actual industry practices.
Crenshaw's Concerns About Recommendations
Crenshaw noted that the memo is a "theoretical exercise, not regulatory clarity" and does not represent the SEC's formal stance but merely reflects staff opinions. "Instead of providing clarity," she stated, "this memo just raises more questions."
Unpredictability of Regulation in the Crypto Industry
Crenshaw warned projects operating in the liquid staking space to exercise caution, as clear legal protections remain uncertain.
The SEC's findings on liquid staking warrant careful analysis, and Crenshaw stresses that current practices do not offer a clear outlook on future regulation in this area.
