US SEC Commissioner Caroline Crenshaw sharply criticized the staff statement released Tuesday by the Corporate Finance Department, which praised the SEC’s position on regulators’ liquid staking activities, saying it caused more confusion than clarity.
“Something better not mentioned,” Crenshaw’s rebuttal began, and she insisted on a staff statement that “murs water into mud” by resorting to untested assumptions.
Crenshaw warns that the statement creates “a wall of wobble of fact without the industry’s reality anchor,” and that liquid staking entities should proceed carefully: “Caveat Liquid Staker.”
A statement from the SEC staff states that certain liquid staking activities do not constitute a security offering depending on how they are structured. Chairman Paul Atkins called the move a “significant step” and outlined which cryptocurrency activities are outside the institution’s jurisdiction.
Source: sec.gov
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SEC Commissioner Hester Perth also released a commentary after the agency’s statement, claiming that Liquid Staking is a similar familiar practice to depositing goods with agents who issue receipts.
“Today’s statement clarifies the division’s view that fluid staking activities related to protocol staking do not include securities offers and sales,” Perth wrote.
https://www.youtube.com/watch?v=ry9mi57pbjs
What is liquid staking and why is it important?
With Liquid Staking, Crypto Holders can earn rewards by staking assets while trading, borrowing, or otherwise participating in Defi using the Tokenized version (Liquid Staking Token). It increases the liquidity and flexibility of the proof network, allowing for more efficient capital use and broader access to staking profits.
Liquid Staking is rapidly growing into a key segment of the cryptocurrency market, with nearly $67 billion locked across various protocols, based on Defillama data.
Today, Ethereum controls the space, accounting for about $51 billion in total. Liquid stakeing’s major platforms include Lido Finance, Rocket Pool and ANKR. This drives a large part of this growth by allowing users to bet assets while maintaining liquidity.
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