The SEC in the U.S. has finally relented, officially announcing that liquid staking does not constitute a securities offering and does not require registration. This news is like rain after a long drought for the DeFi ecosystem. As soon as the news broke, ETH surged past $4000, and the entire DeFi sector skyrocketed.
It's important to know that liquid staking has always been the sword of Damocles hanging over DeFi. Previously, no one could be sure whether the SEC might suddenly intervene, leaving many projects on edge. Now that the official stance has been set, everyone can finally work confidently and boldly.
Data speaks for itself: the scale of the liquid staking market has reached $67 billion, and this is still under uncertain regulatory conditions. Now that the policy green light is on, this number is expected to double soon. Leading protocols like Lido and Rocket Pool will definitely be the biggest beneficiaries.
Liquid staking has solved the biggest pain point of traditional staking—funds being locked. Previously, staking ETH required a long lock-up period during which nothing could be done. Now, with liquid staking, you can obtain tokens like stETH, enjoying staking rewards while maintaining liquidity, achieving the best of both worlds.
More importantly, this clears the biggest obstacle for institutional funds entering DeFi. Institutions are most afraid of regulatory risks, and now that the SEC has stated there are no issues, Wall Street's money is ready to come in. Giants like Goldman Sachs and JPMorgan have long been researching DeFi and were just waiting for this starting gun.
Technological innovation will also accelerate. Previously, developers were always worried that being too innovative would touch regulatory red lines, but now they can unleash their creativity. More innovative liquid staking products are expected to emerge, offering higher yields and better user experiences.
Of course, the SEC's clarification is not unconditional. Specific projects still need to be evaluated on a case-by-case basis, and not all projects claiming to be liquid staking will pass. Project parties still need to ensure compliance; they can't assume that having a special approval means they can act recklessly.
Overall, this is a milestone event in the history of DeFi development. From wild growth to regulatory recognition, DeFi is moving towards the mainstream. As the regulatory environment continues to improve, the boundaries between traditional finance and DeFi will become increasingly blurred, ultimately achieving a true financial revolution.
For investors, now is a golden opportunity to layout in DeFi. Regulatory risks have been eliminated, institutional funds are coming in, and innovation is about to explode. With these three favorable factors combined, it will be difficult for DeFi tokens not to rise.