The US Securities and Exchange Commission (SEC) has issued a position statement clarifying that liquid staking activities and tokens do not constitute a securities offering.
SEC's Decision on Liquid Staking
The SEC confirmed that projects issuing liquid staking tokens (LSTs) and users who hold or trade these assets are not required to register their transactions. This statement has been positively received in the industry.
Market Evidence and Prospects
According to DeFiLlama, the total value locked (TVL) in liquid staking protocols is nearly $67 billion. This popularity surge is tied to Ethereum’s transition to proof-of-stake, attracting institutional interest in compliant solutions.
Criticism and Implications of the New Guidance
Some SEC commissioners disagree with the new guidance. Commissioner Caroline Crenshaw stated that the recommendations were based on 'shaky facts' that could complicate the situation. This statement was made amid increasing scrutiny from global regulators on decentralized finance (DeFi) protocols.
The SEC's decision marks a significant milestone for the liquid staking industry and can greatly impact the segment's development, even as internal consensus at the SEC remains in question.
