SEC Declares Liquid Staking and Staking Tokens Are Not Securities
The U.S. Securities and Exchange Commission (SEC) has taken a decisive stance on crypto liquid staking, stating that such activities are not considered securities. This announcement, made Tuesday, offers long-awaited clarity for crypto participants engaging in protocol staking and the issuance of staking receipt tokens.
According to the SEC’s Division of Corporation Finance, liquid staking operations—where participants stake crypto assets through a service provider in exchange for a liquid token—do not fall under the definitions of securities in the Securities Act of 1933 or the Securities Exchange Act of 1934. As a result, these activities do not require registration with the SEC nor do they need to comply with traditional exemptions from registration.
The statement further clarifies that even the minting, issuance, and secondary market trading of staking receipt tokens do not constitute securities transactions—unless the underlying crypto assets are tied to an investment contract. This provides a clear regulatory green light to providers and traders operating within the liquid staking ecosystem.
SEC Chair Paul Atkins described the move as a “significant step forward,” applauding the agency’s growing efforts to distinguish between different types of crypto activities and their regulatory implications.
The announcement follows a wave of pro-crypto updates from the SEC, including earlier guidance recognizing certain stablecoins as cash equivalents. The Commission's tone has notably shifted in recent months, coinciding with the return of President Donald Trump to office and the enactment of the GENIUS Act in July—a new law that classifies regulated stablecoins as a distinct financial instrument outside the realm of securities and commodities.
In line with this new approach, the SEC's crypto task force has also announced a series of upcoming public roundtables aimed at fostering industry engagement and regulatory clarity across the U.S.
Together, these developments mark a major turning point in how U.S. regulators approach decentralized finance and crypto-based financial tools.