#ProjectCrypto In a statement from the SEC, the Division of Corporate Finance stated that they do not consider liquid staking activities related to staking protocols to involve the offering and sale of securities within the meaning of the Securities Act.

Thus, the SEC Division stated that participants in these staking activities do not need to register with the Commission for transactions that fall under the Act or that are included in one of the exemptions from registration under the Act.

Additionally, the Division of Corporate Finance also stated that they do not consider the offering and sale of liquid staking receipt tokens as securities, unless the crypto assets being collateralized that are deposited are part of or subject to an investment contract.

In line with this, the Commission Division stated that providers of liquid staking participating in the process of minting, issuing, and redeeming staking receipt tokens do not need to register those transactions. This also applies to those participating in the offering and sale of these tokens in the secondary market.

The only exception is if the crypto assets being collateralized that are deposited are part of or subject to an investment contract. This latest regulatory guidance comes a few days after the SEC launched their Crypto Project initiative.

The Division of Corporate Finance indicated that this latest statement is part of an effort to clarify the application of federal securities laws to crypto assets. It should be noted that SEC Chairman, Paul Atkins, stated during the launch of the Crypto Project that most crypto assets are not securities.

This latest guidance from the SEC is a significant boost for the cryptocurrency industry, given that liquid staking has become an integral part of this sector. It is hoped that this will pave the way for the Commission to approve these staking activities for Solana ETFs.