Closeup of the seal of the United States Securities and Exchange Commission (SEC) seen at its headquarters in Washington, DC.

Closeup of the seal of the US SEC seen at its headquarters in Washington, DC. Source: Tada Images - stock.adobe.com

Key Takeaways:

SEC Commissioner Caroline Crenshaw criticized the agency’s liquid staking guidance, calling it confusing and disconnected from industry realities.
The staff statement suggested some liquid staking structures may fall outside securities law, a view supported by SEC Chair Paul Atkins and Commissioner Hester Peirce.
Liquid staking, now a $67 billion sector led by Ethereum platforms like Lido and Rocket Pool, enables users to earn staking rewards while retaining asset liquidity.

U.S. SEC Commissioner Caroline Crenshaw has criticized a recent statement from the agency’s Division of Corporation Finance on liquid staking, arguing that it adds confusion rather than clarity.

The staff’s statement claimed that certain liquid staking arrangements may not constitute securities offerings, depending on their structure.

JUST IN: 🇺🇸 SEC declares crypto liquid staking activities are not considered securities. pic.twitter.com/RqvzZodWAs
— Watcher.Guru (@WatcherGuru) August 5, 2025

Crenshaw disagreed, calling the rationale speculative and disconnected from industry realities, warning that it could mislead providers and investors.

She described the agency’s logic as a “wobbly wall of facts” and urged caution with the phrase: “Caveat liquid staker.”

In contrast, SEC Chair Paul Atkins welcomed the statement as a positive step toward regulatory clarity.

Commissioner Hester Peirce also supported the view, comparing liquid staking to depositing goods with an agent who issues receipts.

She emphasized that such activities, when tied to protocol staking, may not involve securities offerings.

Liquid staking allows users to stake crypto assets and receive tokenized versions that can still be used in DeFi applications.

With nearly $67 billion in assets locked, Ethereum dominates the space with over $51 billion staked through platforms like Lido, Rocket Pool, and Ankr.