SEC: Liquid Staking Platforms Like Lido and Rocket Pool Not Classified as Securities
The SEC clarified that properly structured liquid staking programs—issuing receipt tokens without discretionary management—do not constitute securities, offering clear regulatory guidance for Ethereum staking protocols.
On August 5, the SEC released a staff statement clarifying that properly structured liquid staking programs do not meet the legal definition of a security under US law. The guidance explains that liquid staking, which issues receipt tokens representing staked assets, avoids the Howey test due to the absence of managerial discretion, while centralized providers with additional services may not qualify. SEC Chairman Paul S. Atkins noted the update as a significant step toward clarifying crypto asset activities, potentially boosting Ethereum’s long-term market confidence.
- Liquid Staking: A staking method where users receive liquid tokens representing their staked assets, allowing them to maintain asset liquidity while earning rewards.
- Receipt Tokens: Tokens issued in liquid staking that represent ownership of staked assets, enabling users to use these tokens in other crypto applications.
- Howey test: A legal framework used to determine whether a transaction qualifies as an investment contract and thus a security under U.S. law.