SEC Offers Clarity on Liquid Staking: A Step Toward Smarter Crypto Regulation

Securities and Exchange Commission (SEC) Chairman Paul Atkins has pledged to bring greater transparency to digital asset regulation. As part of this commitment, the SEC is working to clearly define which crypto assets fall under the umbrella of securities law.

In a significant development for the crypto industry, on Tuesday, August 5, the SEC’s Division of Corporate Finance issued a “Statement on Certain Liquid Staking Activities.” The statement clarifies that, under certain conditions, liquid staking activities do not constitute the offer and sale of securities. Therefore, participants in these activities are not required to register with the SEC under the Securities Act, nor are they required to qualify for exemptions.

Further, the Division determined that Staking Receipt Tokens—digital tokens received in exchange for staked crypto assets—also do not constitute securities when tied to liquid staking programs, unless the deposited crypto assets themselves are part of or subject to an investment contract.

“Liquid staking is a new solution to an old problem,” said SEC Commissioner Hester Peirce, comparing staking receipt tokens to warehouse receipts or bills of lading—tools that represent ownership without transforming the nature of the underlying asset. “Today’s statement clarifies the Division’s view that liquid staking activities in connection with protocol staking do not involve the offer and sale of securities. Instead, it is a variant on the longstanding practice of depositing goods with an agent who performs a ministerial function in exchange for a receipt that evidences ownership of the goods.”

This guidance follows years of SEC scrutiny over staking-as-a-service models, and speculation that liquid staking providers were under investigation by the Division of Enforcement. While this new statement does not carry the force of law, it marks a potential turning point—one that may effectively close the chapter on enforcement actions targeting liquid staking services.

What This Means for the Crypto Industry

This is a rare moment of regulatory clarity in the fast-moving world of crypto—and it matters. With this guidance, the SEC appears to be acknowledging a nuanced approach to digital assets regulation, separating functional protocols from securities offerings.

For providers previously targeted by the SEC, this new guidance could help close ongoing investigations—and makes clear that past settlements don’t reflect the current Commission’s stance on liquid staking.

For providers involved in liquid staking or offering staking services, now is the time to evaluate any prior interactions with the SEC and consider engaging legal counsel to assess whether new opportunities—or challenges—may arise from this updated guidance.

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