SEC Affirms Liquid Staking Activities Outside Securities Laws

The U.S. SEC clarified in August 2025 that certain liquid staking, involving receipt tokens without additional profit-sharing, isn’t considered securities, impacting platforms like Lido and Marinade Finance.

This clarity may propel approval of spot Ethereum ETFs by addressing liquidity concerns, potentially influencing staking and cross-chain bridging activities in the crypto market.

SEC Clarifies Liquid Staking Non-Security Status

SEC Chairman Paul S. Atkins emphasized the importance of clear guidance on emerging technologies. This statement asserts that liquid staking activities where receipt tokens merely represent claims on staked assets without profit-sharing or managerial intervention are not securities. Lido, Marinade Finance, JitoSOL, and Stakewise are examples of involved protocols that may operate without SEC registration. The SEC’s position is not binding regulation but indicates permissible operational structures for liquid staking receipt tokens.

Crypto data from CoinMarketCap indicates Ethereum’s value at $3,628.61, with a market cap of $438.01 billion. Despite recent volatility, Ethereum experienced significant gains of 41.25% over the last month. Its trading volume over the past 24 hours was $30.22 billion, down 7.43%.

Market reactions have been positive. While direct comments from industry leaders like Vitalik Buterin or CZ are unavailable, the overall community sentiment appears optimistic. Such regulatory clarification is welcomed for ETH and related assets, as demonstrated by Ethereum’s exit queue shrinking to $1.78 billion recently.

“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. 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.” – Paul S. Atkins, SEC

Positive Market Reaction to SEC’s Staking Guidance

Did you know? Liquid staking allows users to maintain liquidity while participating in staking, making it a flexible option for investors.

Insights from Coincu research suggest this regulatory development could catalyze shifts in staking technology and financial products. As interest in ETH and staking grows, innovations are expected in series of protocols adapting to SEC’s clarity on liquid staking securities laws.

Insights from Coincu research suggest this regulatory development could catalyze shifts in staking technology and financial products. As interest in ETH and staking grows, innovations are expected in series of protocols adapting to SEC’s clarity on liquid staking securities laws.