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The U.S. Securities and Exchange Commission (SEC) has issued a new statement confirming that liquid staking activities in crypto are not considered securities under existing securities laws. This update offers much-needed clarity for participants in the growing liquid staking sector.
Below is a breakdown of the key points from the SEC’s announcement:
✅ Liquid Staking ≠Securities
According to the SEC’s Division of Corporation Finance, liquid staking activities tied to protocol staking do not count as the offer or sale of securities. This means participants in these activities are not required to register with the Commission under the Securities Act of 1933 or the Securities Exchange Act of 1934.
This clarification removes a layer of uncertainty for staking service providers and users, helping them operate without fear of breaching federal securities laws — as long as their activities fall within the scope defined by the SEC’s statement.
đź’ˇ What About Staking Receipt Tokens?
The SEC further noted that Staking Receipt Tokens, when offered or sold in the manner outlined in the statement, also do not qualify as securities — unless they are linked to an investment contract involving the underlying crypto assets.
In simple terms, if these tokens are not part of any investment scheme, there’s no need for SEC registration — even for those involved in issuing or trading them in the secondary market.
🧾 Stablecoins Recognized as Cash
Earlier the same day, the SEC also acknowledged regulated stablecoins as “cash” – another major development for the industry. This shift reflects a more open regulatory stance by the agency, especially following recent political changes in the U.S.
🗣️ What’s Driving the Change?
The SEC’s crypto task force has announced plans to host crypto roundtables across the U.S., aiming to engage more directly with the Web3 community.
These updates also align with the GENIUS Act, recently signed into law by President Trump. The act officially recognizes stablecoins as a new financial instrument, not classified as either securities or commodities.
đź“Ś Final Thoughts
The SEC’s latest guidance signals a more transparent and constructive approach toward regulating crypto. By excluding liquid staking and related token activities from securities classification, the agency is providing the industry with a clearer path forward — while reducing regulatory uncertainty for participants.
Stay tuned with Coinwookies for more important updates from the crypto space – simplified and unbiased.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
