In a significant move for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has clarified that liquid staking operations do not fall under the category of securities, according to its latest guidance on digital assets.
The SEC stated that entities involved in liquid staking are not required to register under existing securities laws, offering much needed regulatory clarity to participants in the staking ecosystem.
Furthermore, the sale and transfer of liquid staking receipt tokens are also exempt, provided the underlying assets are not tied to an investment contract.
This clarification opens the door for liquid staking platforms to operate without fear of enforcement, provided they adhere to the outlined conditions.
Notably, ETF giants like BlackRock are now exploring the integration of staking into their proposed spot Ethereum #ETFs , a move that could redefine institutional participation in $ETH staking.
