The U.S. Securities and Exchange Commission (SEC) under new Chair Paul Atkins announced that most cryptocurrencies, including liquid staking tokens, are not considered securities. This announcement will take effect in August 2025.
Reclassification of Cryptocurrencies as Non-Securities
The SEC has decided that most crypto assets, including liquid staking tokens, are not considered securities. New Chair Paul Atkins, who succeeded Gary Gensler known for strict enforcement, announced the change, signaling regulatory relief for the digital assets market.
DeFi Confidence at New Heights
The immediate effects of this ruling are evident in increased regulatory clarity for DeFi projects. With ETH identified as a non-security, industry confidence has soared, leading to stable valuation and liquidity. This move decreases compliance risks, allowing for more innovation within crypto markets. The shift towards moderation indicates potentially fewer constraints for developers and investors.
Removal of Threats to Staking Protocols
The previous approach under Gensler heightened fears, labeling some staking as securities. The current guidance removes regulatory threats, providing relief to liquid staking protocols. Historical trends suggest this clarity will stabilize liquid staking markets. Expert projections indicate continued growth, with regulatory detente supporting progress.
The SEC's change under Chair Paul Atkins opens new avenues for the crypto industry. By removing ambiguities and the regulations that preceded this moment, the market has become more reliable and resilient for innovations and growth.
