The U.S. Securities and Exchange Commission’s Division of Corporation Finance issued written guidance stating that liquid staking activities and the tokens representing those positions are not securities transactions under federal law.
The U.S. Securities and Exchange Commission’s Division of Corporation Finance issued written guidance stating that liquid staking activities and the tokens representing those positions are not securities transactions under federal law.
The clarification follows a letter sent last week by industry participants—including Jito Labs, Bitwise, Multicoin Capital, VanEck US and the Solana Foundation—asking the agency to confirm that liquid staking falls outside the scope of the securities regime. The SEC said the absence of ongoing entrepreneurial or managerial efforts on behalf of token holders means the transactions do not meet the Howey test for investment contracts.
Market participants welcomed the decision, saying it removes a regulatory overhang for protocols that allow investors to lock proof-of-stake assets while retaining tradable receipts. The guidance is part of the SEC’s broader “Project Crypto,” aimed at clarifying how existing securities laws apply to digital-asset activities.
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Source: https://thedefiant.io/news/regulation/sec-clarifies-liquid-staking-tokens-securities-76ab000c