"US SEC 'Liquidity Staking Guidelines' to Form the Basis for DeFi Institutional Adoption"

Last night, the U.S. Securities and Exchange Commission (SEC) issued guidelines regarding the securities status of liquidity staking, which are expected to serve as the foundation for institutional adoption of decentralized finance (DeFi).

According to Cointelegraph on the 6th (local time), Mara Schmidt, CEO of Alluvial, stated, "With this announcement from the SEC, institutions can now confidently integrate liquidity staking into their offerings. Based on this, institutions are expected to generate new revenue streams, expand their customer base, and create secondary markets."

She added, "This decision by the SEC will trigger a wave of new products and services that accelerate mainstream financial participation in the digital asset market."

The SEC last night defined liquidity staking as depositing virtual assets (cryptocurrencies) with protocols or service providers and receiving a 'liquidity staking receipt token' that certifies the deposited asset and the right to rewards. The Commission also stated that LSTs may not qualify as securities offerings or sales under securities law.