Key Takeaways
- The SEC clarified that certain liquid staking activities and tokens (e.g. Lido, Marinade) are not regulated as securities.
- This supports Chairman Atkins’ Project Crypto, aiming to modernize rules for crypto asset services.
- Industry sees this as a green light for staking-enabled spot ETH ETFs and related products.
In its latest guidance, the SEC signaled that liquid staking tokens like those from Lido, Marinade Finance, JitoSOL, and Stakewise don’t classify as securities if they meet outlined conditions.
The decision forms part of the SEC’s broader “Project Crypto” initiative to update regulations for custody, distribution, and trading of digital assets.
What the SEC Rules Clarify
Under the new statement, staking receipt tokens issued proportionally to staked assets and rewards are exempt from securities laws, as long as the underlying asset itself isn’t part of an investment contract.
This formalizes earlier hints from the agency about easing rules for decentralized protocols.
Regulatory Shift Under Project Crypto
Released weeks after the launch of Project Crypto, the guidance represents the agency’s evolving stance toward crypto asset regulation.
SEC Chair Paul Atkins termed it a substantial step forward and mentioned staking tokens may assist liquidity in potential spot Ethereum ETFs.
Market Response & ETF Implications
Observers such as Nate Geraci and legal experts see the clarification as removing a final barrier to ETF providers offering staking via receipt tokens.
This could enable new product designs where users stake ETH through ETFs without violating securities rules.
Final Thoughts
The SEC’s liquid staking guidance under Project Crypto marks a significant regulatory milestone—favoring clarity and innovation in crypto markets. By distinguishing staking tokens from securities, the agency may pave the way for staking-integrated financial products and more flexible investor access.
Frequently Asked Questions
Which liquid staking tokens are exempted?
Tokens from Lido, Marinade, JitoSOL, and Stakewise under enumerated conditions.
How does this affect spot Ethereum ETFs?
It opens the door for ETFs to integrate staking-aligned liquidity tools without being classified as securities.
What is Project Crypto?
An SEC initiative to modernize regulations governing crypto custody, distributions, and compliance.
