Ethereum News Today: Ethereum Staking Surpasses 30% Supply as SEC Offers Regulatory Clarity

The Ethereum network has experienced a significant surge in transaction activity, reaching a one-year high amid ongoing regulatory discussions around liquid staking. Data from Dune Analytics shows that over 36 million ETH are now staked on the network, representing nearly 30 percent of the total supply. This increase, which includes over $1.8 billion in staked value during the first half of June, reflects growing long-term confidence among investors who are choosing staking rewards over immediate liquidity [1].

The rise in staking activity comes despite ongoing uncertainty around regulatory definitions. The U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance recently stated that liquid staking activities do not constitute the offer and sale of securities if no investment contracts are involved. This clarification provides some legal reassurance for protocols such as Lido and Rocket Pool, which operate within the liquid staking framework [1]. However, internal disagreements within the SEC have clouded the clarity of the guidance. Commissioner Caroline Crenshaw criticized the statement, calling it speculative and potentially misleading, while Commissioner Hester Peirce supported it, emphasizing its importance in clarifying regulatory expectations [1].

The SEC’s position appears to have had a positive effect on market sentiment. Liquid staking tokens, which allow users to retain liquidity while staking their ETH, saw their total market capitalization exceed $86.3 billion in recent days, showing a 3% rise in the previous 24 hours [2]. This resilience indicates continued demand for products that enhance the utility of staked assets. Market participants, including DeFi platforms, have welcomed the clarification as a step toward legitimacy. Mara Schmiedt, CEO of Alluvial, noted that the ruling allows institutions to more confidently integrate liquid staking tokens into their offerings, potentially opening up new revenue opportunities and secondary markets [1].

On the user activity front, Ethereum’s on-chain transaction volume has reached $238 billion in recent months, signaling heightened engagement with DeFi protocols. This growth is partly driven by the declining supply of liquid ETH, with more than 23 million tokens held in addresses with no history of sales, amounting to approximately $82.6 billion [1]. As users continue to lock up their assets, the reduced liquidity may influence Ethereum’s price dynamics and overall demand.

While the SEC’s clarification offers a degree of regulatory clarity, it is not a final resolution. The divisional nature of the statement and the lack of a binding legal framework mean that uncertainty remains. Nonetheless, the Ethereum community and broader crypto industry are adapting to the evolving regulatory landscape. The resilience of Ethereum’s staking and DeFi ecosystems suggests that participants are prioritizing long-term gains over short-term volatility, even in the face of regulatory ambiguity [2].

[1] https://coinmarketcap.com/community/articles/68949624ab27187a281f7ac1/

[2] https://m.facebook.com/manuel.guevarra.369210/photos/the-liquid-staking-tokens-have-grown-to-over-86-billion-in-market-cap-led-by-lid/738123645767513/