SEC Clarifies Liquid Staking Tokens Not Securities

The U.S. Securities and Exchange Commission (SEC) has released a staff statement clarifying that certain liquid staking activities do not fall under the definition of securities offerings, providing much-needed regulatory clarity for the evolving crypto sector [1]. This statement, issued by the SEC’s Division of Corporation Finance on August 5, 2025, outlines that liquid staking receipt tokens—used to represent staked assets and associated rewards—may not be classified under the Securities Act of 1933 or the Exchange Act of 1934 [2]. The agency emphasized that the legal status of such tokens depends on their structure, but the clarification removes significant uncertainty for protocols already operating similar models [2].

The statement is part of the SEC’s broader Project Crypto initiative, aimed at offering guidance on the regulatory treatment of emerging crypto technologies [3]. The agency stressed that while each case must be evaluated on its specific facts, this interpretation provides a framework for understanding how certain staking mechanisms may function outside traditional securities laws [2]. This aligns with prior SEC statements that highlighted the decentralized and transferable nature of liquid staking tokens as key factors in their exclusion from securities definitions [4].

Industry participants, particularly decentralized finance (DeFi) developers and staking service providers, have welcomed the guidance, which may encourage broader adoption of compliant liquid staking products [1]. The SEC’s position reflects a nuanced understanding of crypto’s structural differences from traditional financial instruments and signals a more pragmatic approach to regulation [1]. This shift contrasts with the agency’s historically stricter stance on crypto projects, where enforcement actions were often based on perceived non-compliance with securities laws [1].

The regulatory clarity provided by the SEC is expected to foster innovation and reduce ambiguity for market participants who previously faced legal exposure due to uncertain definitions [2]. While the statement does not constitute a formal rule change, it represents a practical interpretation that could influence future enforcement decisions and legal interpretations [1]. The SEC’s evolving approach suggests a willingness to engage with industry developments while maintaining regulatory oversight [2].

Sources:

[1] Staking Sequel – Comments on Division of Corporation Finance, [https://www.sec.gov/newsroom/speeches-statements/peirce-staking-sequel-080525](https://www.sec.gov/newsroom/speeches-statements/peirce-staking-sequel-080525)

[2] SEC says certain liquid staking activities fall outside..., [https://www.tradingview.com/news/cointelegraph:529d32661094b:0-sec-says-certain-liquid-staking-activities-fall-outside-of-securities-laws/](https://www.tradingview.com/news/cointelegraph:529d32661094b:0-sec-says-certain-liquid-staking-activities-fall-outside-of-securities-laws/)

[3] SEC Clarifies Liquid Staking Isn't a Security Amid Project..., [https://coingape.com/sec-clarifies-liquid-staking-isnt-a-security-amid-project-crypto-push/](https://coingape.com/sec-clarifies-liquid-staking-isnt-a-security-amid-project-crypto-push/)

[4] Liquid staking activities and tokens are not considered..., [https://www.reddit.com/r/CryptoCurrency/comments/1mifii0/liquid_staking_activities_and_tokens_are_not/](https://www.reddit.com/r/CryptoCurrency/comments/1mifii0/liquid_staking_activities_and_tokens_are_not/)