SEC Says Liquid Staking Falls Outside Securities Law

The U.S. Securities and Exchange Commission released guidance stating that certain forms of liquid staking do not fall under securities laws, marking a notable shift in how the agency approaches crypto regulation.

What’s the Scoop?

• No Registration Needed: The SEC said liquid staking participants do not need to register under securities laws if the activities don’t involve an investment contract.
• Staking Receipt Tokens Exempted: According to the SEC, the issuance of receipt tokens tied to staking—used to track ownership and rewards—is not considered a securities offering, unless paired with an investment contract.
• Chair Statement: SEC Chair Paul Atkins called the update a “significant step forward,” crediting Project Crypto, the agency’s broader initiative to revise crypto-related regulation.