U.S. Securities and Exchange Commission (SEC) Commissioner Caroline A. Crenshaw has sharply criticized a recent statement regarding liquid staking, asserting that it exacerbates legal uncertainties for investors.
Criticism of SEC Statement
Crenshaw argued that the statement contains numerous assumptions about liquid staking, which are not consistent with industry practices. She stated, "The Liquid Staking Statement presents a structure of assumptions stacked on top of each other, with little connection to reality."
Uncertainty and Concerns
The Commissioner noted that even in the footnotes to the statement, staff indicated that the broad legal inferences made were only valid as long as the stated assumptions held true. She added, "When liquid staking activities deviate even slightly from the assumptions in the statement, that activity falls outside the scope of this statement."
Official SEC Position
Crenshaw reminded that the statement reflects only the staff's opinion and does not represent the Commission's official stance. She urged caution from companies offering liquid staking services: "A statement filled with assumptions and limited legal scope will not provide clarity to the industry."
Crenshaw's criticism emphasizes the need for transparency and clarity in legislative initiatives concerning liquid staking, leaving uncertainty for companies operating in this space.
