The U.S. Securities and Exchange Commission (SEC) released a statement regarding liquid staking, clarifying that this activity does not fall under the sale of securities.
SEC Position on Liquid Staking
The SEC stated that "liquid staking activities in connection with Protocol Staking do not involve the offer and sale of securities." Liquid staking participants do not need to register their transactions with the SEC.
Functions of Staking Providers
Liquid staking allows crypto holders to deposit their assets with a provider or in a DeFi protocol and receive equivalent staking tokens. The SEC defined staking tokens as 'receipts' for the assets staked. Staking providers perform only administrative functions without making investment decisions.
The Future of Staking ETFs
ETF expert Nate Geraci noted that this is the last hurdle for SEC approval of staking in Ether spot ETFs. He believes liquid staking tokens will be used to help manage liquidity within these ETFs.
Thus, the SEC clarified its stance on liquid staking and its potential impact on the ETF market. If staking ETFs are approved, this may influence the price of Ether.
