Lido DAO ($LDO ) Surges 58% in a Week as SEC Clears Liquid Staking From Securities Rules

Lido DAO (LDO) has posted one of its most significant rallies in recent memory, soaring 58% over the past seven days and 20% in just the last 24 hours. The explosive move follows a landmark clarification from the U.S. Securities and Exchange Commission (#SEC ) stating that liquid staking tokens, including Lido’s #stETH , do not qualify as securities under U.S. law.

This decision effectively removes a regulatory overhang that has weighed on the liquid staking sector for years, instantly reshaping the market landscape for both retail and institutional investors.

Regulatory Clarity Sparks a Staking Boom

For years, liquid staking protocols like Lido operated in a gray regulatory zone, with concerns that their tokenized staking derivatives might be classified as securities. Such a designation could have subjected platforms to burdensome compliance requirements, limiting innovation and reducing accessibility.

The SEC’s recent clarification not only lifts that cloud of uncertainty but could open the door for liquid staking products to be integrated into future #ETF offerings. Analysts suggest that such integration could further bridge the gap between traditional finance (#TradFi ) and the decentralized finance (#DeFi ) sector.

Industry analysts note that Lido is now “positioned as the safest large-scale entry point into staking for institutional capital,” thanks to its dominant market position and regulatory green light.