SEC's Guidance on Liquid Staking: A Step Forward for Crypto
The crypto community is celebrating the SEC’s recent guidance on liquid staking, marking a major step forward for regulation and innovation. Released on Tuesday, the SEC clarified that under specific conditions, liquid staking and the resulting tokens may not be classified as securities.
Mara Schmiedt, CEO of Alluvial, highlighted that this brings much-needed clarity, enabling institutions to confidently integrate Liquid Staking Tokens (LSTs) into their offerings—paving the way for new revenue opportunities.
However, not everyone is in agreement. Commissioner Caroline Crenshaw criticized the guidance, questioning its assumptions and lack of full regulatory transparency.
Bitwise’s Katherine Dowling added that this update suggests certain LST activities may avoid the need for securities registration—possibly unlocking wider participation across both retail and institutional markets.
This could boost liquidity and innovation, especially for ecosystems like Solana and stablecoins like USDC.
