liquidstakingsecurities

SEC Declares Liquid Staking Activities and Tokens Are Not Securities

The U.S. Securities and Exchange Commission (SEC) clarified on August 5, 2025, that certain liquid staking activities and their associated tokens are not considered securities under federal securities laws. This clarification aims to provide regulatory certainty for the crypto sector, particularly for liquid staking protocols and tokens such as Ethereum's stETH and Solana's JitoSOL.

Key points from the SEC's statement by the Division of Corporation Finance include:

- Liquid staking receipt tokens, which represent ownership of staked assets and related rewards, generally do not qualify as securities under the Securities Act of 1933 or the Exchange Act of 1934.

- The determination depends on the specific facts and structural characteristics of the liquid staking tokens.

- Providers of liquid staking do not need to register with the SEC, nor do they necessarily need to provide securities law disclosures for these activities.

- This guidance supports decentralization and innovation by removing significant legal uncertainty for existing protocols and new products.

-The statement, while non-binding, signals a more pragmatic regulatory approach compared to previous strict enforcement, facilitating broader adoption of liquid staking and associated DeFi products.

This regulatory clarity is regarded as a major positive development, enabling protocols to scale more confidently and encouraging institutional participation in liquid staking infrastructure. It is also expected to accelerate approval processes for ETFs and other financial products involving liquid staking tokens.

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