According to Foresight News, U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw has expressed concerns over the recent liquidity staking statement, stating that it fails to clarify the application of federal securities laws to crypto assets and instead adds to the confusion. Crenshaw argues that the statement is based on assumptions that have not been validated by industry realities, and the legal conclusions drawn are only applicable if these assumptions hold true.

Previously, Foresight News reported that the SEC released a statement regarding liquidity staking activities, clarifying that such activities are not considered securities. The SEC indicated that participants in liquidity staking do not need to register their transactions with the Commission under the Securities Act, nor do they need to comply with the registration exemption provisions of the Act for these activities.