The SEC is facing internal disagreements regarding the new liquid staking guidance, which has drawn criticism from Commissioner Caroline Crenshaw.
Criticism of New Liquid Staking Guidance
Commissioner Caroline Crenshaw sharply criticized the agency's new guidance on liquid staking, labeling it 'a wobbly wall of assumptions'. She believes that the interpretation misleads and fails to reflect the actual workings of the industry.
SEC's Position on Liquid Staking
Recently, the SEC released a legal interpretation stating that liquid staking is not viewed as a securities offering, which allows platforms to avoid registering their services with the SEC. This may facilitate innovation and user adoption of such services.
Recommendations for Liquid Stakers
Crenshaw advised market participants to not view this guidance as a safe direction for their actions. She noted that any deviation from the assumptions in the guidance could potentially lead to enforcement actions by the SEC.
Crenshaw's position highlights the need for caution among participants in liquid staking, as the SEC continues to explore and develop regulatory approaches to this ever-changing field.
