On August 5, 2025, the SEC clarified that most liquid staking is not a security under federal law, impacting key blockchains like Ethereum and Solana.
SEC's Stance on Liquid Staking
On August 5, 2025, the US SEC's Division of Corporation Finance clarified that liquid staking doesn't typically qualify as a securities offering. This is contingent on arrangements lacking managerial third-party involvement and tokens being tied to underlying crypto assets.
Industry Impact and Opportunities
Regulatory clarity potentially drives institutional interest and liquidity in liquid staking tokens (LSTs). This could lead to product innovations, including the introduction of liquid staking ETFs, according to SEC staff analysis. Ethereum and Solana are among those most affected.
Historical Context and Future Prospects
Historical trends show SEC's prior actions had influenced crypto markets. Previous guidance excluded liquid staking, creating uncertainty now partially resolved. Loopholes remain, as future reclassification of underlying assets could impact arrangements.
The outcome of this guidance may shape the regulatory future of DeFi protocols, encouraging further engagement in the space.
