The US SEC Division of Corporation Finance announced on August 5, 2025, that certain liquid staking activities and related tokens do not constitute securities under US law.
This clarification marks a significant shift in DeFi regulation, potentially increasing participation in liquid staking protocols.
The SEC confirms liquid staking and tokens exempt from securities laws, providing legal clarity for DeFi protocols.
The SEC affirms that certain liquid staking activities do not constitute securities, offering regulatory guidance for DeFi protocols.
SEC Affirms Liquid Staking Not Securities on Aug 5, 2025
The SEC’s official statement on August 5, 2025, clarified that certain liquid staking activities do not constitute the sale of securities. This decision provides clear regulatory guidance for decentralized finance (DeFi) protocols involved in liquid staking.
The announcement states that staking receipt tokens do not require SEC registration. This applies unless the crypto assets function under an investment contract. The SEC Division of Corporation Finance is the main body involved in this clarification.
“It is the Division’s view that ‘Liquid Staking Activities’… do not involve the offer and sale of securities… Accordingly, it is the Division’s view that participants in Liquid Staking Activities do not need to register with the Commission transactions under the Securities Act…” – SEC Division of Corporation Finance, Official Statement
Ethereum-based Liquid Staking Pools to Benefit Greatly
The statement is expected to impact Ethereum-based liquid staking pools, boosting market confidence. Affected assets include stETH, rETH, and cbETH. Meanwhile, anticipation of increased involvement from institutional players is evident in industry discussions.
Potential financial outcomes include increased liquidity flows into DeFi liquid staking. Analysis of similar past rulings indicates a trend toward greater regulatory clarity, which could enhance growth and innovation within the space.
New SEC Guidelines Distinguish Liquid Staking from Traditional Models
Past SEC decisions found certain staking programs as unregistered securities, raising concerns. The new guidelines clarify how liquid staking differs from traditional models, highlighting a sharper distinction in their structures.
Experts from Kanalcoin predict positive market responses, with a shift towards decentralized models. They highlight that clarity in regulation typically benefits market stability, having observed similar trends following regulatory updates in the crypto space.
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