The US Securities and Exchange Commission (SEC) has stated that certain liquid staking activities do not include securities. This signals a significant shift in the agency's stance on cryptocurrency.
In guidelines issued Tuesday, the SEC indicated that offering and selling Staking Receipt Tokens do not normally constitute securities. The only exception is if the underlying crypto assets are part of an investment contract.
SEC Chair Paul Atkins described it as a huge step forward in the agency's "Project Crypto" project. According to Atkins, they are seeking to build a more crypto-friendly regulatory framework. He emphasized that liquid staking, where users stake crypto via software protocols and receive tokens for their staked assets and rewards, does not need SEC registration.
Industry analysts believe that this guideline removes a key barrier for the SEC in approving staking capabilities in proposed spot Ethereum exchange-traded funds (ETFs). Liquid staking tokens can assist in managing liquidity in these ETFs, overcoming previous SEC concerns.
Several companies, including BlackRock, are considering expanding their Ethereum ETF products to incorporate staking in response to the changing legal landscape. The SEC's decision suggests increased support for cryptocurrency innovation while also establishing clearer guidelines for market participants.
