The SEC's new guidance on liquid staking provides important clarifications for DeFi platforms and institutional investors.
What the Guidance Includes
The SEC’s Division of Corporation Finance announced new liquid staking advice, stating that well-structured liquid staking activities and receipt tokens are not securities. This clear attitude provides much-needed regulatory breathing room for DeFi platforms and institutional enterprises that want to use liquid staking products.
Reactions from SEC Officials
While the SEC Chair praised the liquid staking advice as a significant step forward for clarity under the larger Project Crypto program, not everyone inside the agency shares this excitement. Commissioner Caroline Crenshaw voiced a strong dissent, claiming that the guidance created a "wobbly wall of assumptions" disconnected from the realities of real-world operations. As she stated, "Some things are better left unsaid," followed by a direct precaution to market players.
The Future of Liquid Staking for Investors and Developers
The liquid staking instructions offer institutional investors and DeFi developers a platform for launching products with more legal certainty. However, Crenshaw’s dissent emphasizes that structures deviating from the established assumptions, such as discretionary staking methods or guaranteed returns, may still face regulatory scrutiny. The lesson is clear: proceed with ambition and care.
The new liquid staking guidance is a watershed moment in cryptocurrency regulation, pitting cautious optimism against institutional skepticism. It promotes responsible DeFi innovation while emphasizing the importance of caution.
