Securities Commission clarifies guidelines on liquid staking, highlighting certain actions as falling outside the scope of securities regulations
In a significant development for the cryptocurrency industry, the United States Securities and Exchange Commission (SEC) has confirmed that certain liquid staking activities do not involve the offer or sale of securities. This update is part of the SEC's ongoing Project Crypto initiative, aimed at guiding regulatory treatment of new crypto-related technologies.
The SEC's statement, released on August 5, 2025, emphasizes that liquid staking receipt tokens, which represent ownership of staked assets and rewards, generally are not considered securities under the Securities Act of 1933 and the Exchange Act of 1934. This clarification applies mainly to decentralized protocols without centralized control and where the liquid staking provider's role is limited to administrative actions.
The Division of Corporation Finance's statement emphasizes that if the provider engages in significant managerial efforts to generate returns or enables additional return-generating mechanisms beyond administration, the tokens may become securities subject to registration and enforcement. This clarification provides relief from securities registration requirements for compliant liquid staking protocols and participants but retains SEC enforcement discretion for non-compliant cases.
The new guidance may encourage wider adoption of liquid staking products across compliant platforms. Institutional and state-level interest in crypto asset exposure continues to grow, with Michigan's pension fund confirming a $10.7 million allocation to a Bitcoin ETF.
As the crypto market evolves, various other developments are taking place. Diginex is acquiring compliance firm Findings for $305 million. A16z and DeFi Education Fund have petitioned the SEC for DeFi regulatory clarity. A bullish cryptocurrency exchange has seen a 176% surge on its IPO debut.
In other news, Bitcoin traded at $113,372, falling 1.46% over the past 24 hours. The market cap dropped 1.5% to $2.25 trillion, while trading volume increased 8.13% to $60.09 billion. Bitcoin leverage has hit a 5-year high as ETF inflows surge.
The White House has criticized US banks for Bitcoin ETF access limitations, while the Trump Administration signed the GENIUS Act, mandating stablecoin backing rules. Sapien is bringing millions of minds onchain to train AI, and ChainCatcher is collaborating with Alibaba Cloud for Web3 infrastructure.
Despite the regulatory win, short-term market reactions remained muted amid other macroeconomic factors. The Trump Administration is considering new replacements for the Fed Chair, and BlackRock has declined the launch of XRP and SOL ETFs amidst leadership shifts. BTCC Exchange has announced its first sports sponsorship with NBA's Jaren Jackson Jr.
In the world of DeFi, the OKX X Layer has been upgraded to focus on DeFi and payments. Ripple has acquired Rail for $200 million to boost its payment network. OpenServ and LunarCrush are turning 50 million posts an hour into AI apps.
These developments underscore the dynamic nature of the cryptocurrency sector, where regulatory clarity, innovation, and market dynamics all play crucial roles. As the industry continues to evolve, it is expected that more such updates will shape the landscape in the days to come.
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