According to ChainCatcher, Caroline Crenshaw, a commissioner of the U.S. Securities and Exchange Commission (SEC), stated that the new liquid staking statement failed to clarify the applicability of federal securities laws to crypto assets, instead exacerbating the confusion. The statement is based on a series of assumptions that have not been verified against industry realities, and the legal conclusions only apply if these assumptions hold true. Earlier reports indicated that the SEC issued a statement regarding liquid staking activities, clarifying that such activities are not considered securities. The SEC stated that participants in liquid staking activities do not need to register their trades with the SEC under the (Securities Act) nor do they need to comply with the registration exemption provisions of the (Securities Act) regarding these liquid staking activities.

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