U.S. SEC Commissioner Caroline Crenshaw: New Liquidity Staking Statement May Not Reflect Actual Circumstances

Caroline Crenshaw, a commissioner of the U.S. Securities and Exchange Commission (SEC), stated that the new statement on liquid staking fails to clarify the application of federal securities laws to crypto assets and instead adds to the confusion. The statement is based on a series of assumptions that have not been validated by industry realities, and its legal conclusions only apply if these assumptions hold true. Previously, the SEC issued a statement regarding liquid staking activities, clarifying that liquid staking activities are not considered securities. The SEC noted that participants in liquid staking activities are not required to register transactions with the Commission under the Securities Act, nor do they need to comply with the registration exemption provisions of the Securities Act for these liquid staking activities.