The United States Securities and Exchange Commission (SEC) has marked a significant step toward clearer regulation for the crypto market. According to a staff statement, the commission declared that certain liquid staking activities and the tokens generated by these activities are not considered securities under federal law.
SEC’s Guidance on Liquid Staking
The financial agency has clarified that liquid staking activities are not considered securities. This means that when users stake crypto assets and receive liquid tokens as receipts, it doesn’t constitute the offer or sale of securities. As a result, entities engaging in liquid staking don’t need to register these transactions with the securities regulator. This clarification comes as part of the commission’s broader “Project Crypto” initiative, aimed at providing regulatory clarity for digital-asset markets.
This guidance applies to both protocol-level and custodial liquid-staking services. Market leaders like Ethereum’s Lido and Solana’s Jito get regulatory clarity, lifting a significant regulatory cloud.
The clarification is part of the securities regulator’s efforts to adapt regulations to blockchain innovation. By distinguishing liquid staking from traditional securities, the financial regulator offers more flexibility for crypto industry participants. However, the securities regulator retains enforcement discretion, meaning deviations from outlined criteria could still lead to regulatory scrutiny.
Commenting on this development, SEC Chairman Paul Atkins said:
“Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction.”
Industry leaders have welcomed the financial agency’s stance, noting that the clarity could accelerate innovation and adoption in decentralized finance (DeFi). The removal of regulatory uncertainty is expected to encourage broader use of liquid staking in exchange-traded products and other financial applications.
Regulatory Shifts Shape Crypto Future
The financial regulator’s decision underscores the agency’s ongoing efforts to streamline the regulatory framework for crypto assets, fostering a market environment that encourages innovation without compromising compliance.
Recall that the U.S. lawmakers released a discussion draft on the crypto market structure on July 22, 2025. The bill aims to define the legal status of digital assets and clarify regulatory jurisdiction. It also outlined the responsibilities of the SEC and the Commodity Futures Trading Commission (CFTC) in overseeing the crypto industry.
A few weeks back, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was signed into law by President Trump. This law sets guidelines for U.S. stablecoin issuance. It requires liquid reserves to protect consumers, prevent money laundering, and promote faster global payments with lower fees.
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