The US Securities and Exchange Commission (SEC) has clarified that certain liquid staking activities do not constitute securities offerings, marking an important step towards regulatory clarity in the crypto sector.
SEC Approval of Liquid Staking
The SEC stated that, depending on the facts and circumstances, liquid staking does not fall under the offer and sale of securities as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Liquid staking allows users to stake their digital assets through a protocol and receive tokens as proof of ownership.
Internal Criticism Within SEC
SEC Commissioner Caroline Crenshaw criticized the statement as speculative. She stressed that the guidance could be misleading. In contrast, crypto-friendly Commissioner Hester Peirce supported the clarification, comparing liquid staking to traditional custody practices.
Future of Cryptocurrency Regulation
The internal disagreements within the SEC highlight the growing pressure on the agency to provide clarity in the rapidly evolving digital asset landscape. Liquid staking, given the growing interest from institutional investors, may become a critical element of future regulatory strategies.
Thus, while the SEC is taking steps towards regulating liquid staking, the disagreements among commissioners indicate a need for further work on clarity and consistency in the existing rules.
