SEC Rules Certain Liquid Staking Activities Outside Securities Laws

August 6, 2025

Summary: What did the SEC say about liquid staking?

The SEC clarified that certain liquid staking activities do not count as securities offerings. This means participants don’t have to register them under current securities laws. The decision reflects an effort to provide clearer rules for crypto-related activities.

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The U.S. Securities and Exchange Commission (SEC) has clarified that certain cryptocurrency liquid staking activities are not considered securities offerings, signaling a step toward clearer regulatory guidance for the digital asset industry.

In an official statement, the Commission’s Division of Corporation Finance noted that, depending on specific facts and circumstances, the liquid staking activities addressed in the guidance do not constitute an offer or sale of securities. The agency cited relevant provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 to support its position.

“It is the Division’s view that participants in Liquid Staking Activities do not need to register with the Commission transactions under the Securities Act, or fall within one of the Securities Act’s exemptions from registration in connection with these Liquid Staking Activities,” the Commission stated. 

The SEC described liquid staking as the practice of locking digital assets through a protocol in exchange for a receipt token that represents the staker’s interest or ownership in those assets.

“Under my leadership, the SEC is committed to providing clear guidance on the application of the federal securities laws to emerging technologies and financial activities,” SEC Chairman Paul Atkins said. “Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction. I am pleased that the SEC’s Project Crypto initiative is already producing results for the American people,” he added. 

The SEC’s clarification comes alongside the launch of Project Crypto, a new initiative designed to align the agency’s regulatory efforts with President Donald Trump’s stated goal of establishing the United States as a global leader in the cryptocurrency sector.

Atkins shared Project Crypto was established in direct response to recommendations laid out in the recent digital assets report issued by President Trump’s Working Group.

The SEC’s recent moves come as part of a broader shift in how regulators are engaging with the evolving digital asset landscape. With market participants seeking clearer guardrails and consistent guidance, industry watchers are closely monitoring how these developments may influence future policymaking and innovation.

While questions remain around the application of existing laws to emerging technologies, signals from the Commission suggest a growing awareness of the need for regulatory frameworks that foster both investor protection and technological advancement. As digital finance continues to expand, clarity and communication between regulators and stakeholders will likely remain a central focus in the months ahead.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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