US SEC: “Some Liquid Staking Does Not Qualify as Securities”

The U.S. Securities and Exchange Commission (SEC) announced on the 5th (local time) that certain Liquid Staking activities may not constitute 'security issuance or sale' under federal securities laws.

The SEC defined liquid staking as depositing virtual assets (cryptocurrency) with a protocol or service provider and receiving “liquid staking receipt tokens” to prove both the deposited assets and the rights to rewards.

SEC Commissioner Paul Atkins stated, “Our goal is to clarify the application of securities laws to emerging technologies and financial activities,” adding, “It is encouraging that the SEC’s ‘Project Crypto’ initiative is producing tangible results.”