Back
SEC Division of Corporation Finance Comments on Liquid Staking Activities

SEC Division of Corporation Finance Comments on Liquid Staking Activities

The SEC clarifies that compliant liquid staking protocols, which issue receipt tokens for staked ETH, are not classified as securities, offering clearer regulatory guidance for the Ethereum ecosystem.

ETH

Summary

The SEC’s Division of Corporation Finance issued formal guidance on Aug. 5 stating that liquid staking protocols that issue receipt tokens without managerial discretion do not meet the definition of securities under federal law. The statement details operational models of protocols like Lido and Rocket Pool and highlights broader market implications including ETH staking trends.

Terms & Concepts
  • Liquid Staking: A process that allows users to stake cryptocurrencies while retaining liquidity through receipt tokens representing their staked assets.
  • Receipt Tokens: Tokens issued by staking protocols that reflect ownership of staked assets without granting discretionary control to third parties.