The U.S. Securities and Exchange Commission (SEC) has officially released a statement confirming that liquid staking and related tokens do not fall under the definition of securities. This means that companies issuing such assets, as well as investors holding or trading LST tokens, do not need to register the relevant transactions with the SEC.
This is reported by Business • Media
SEC’s Explanation and Market Impact
The SEC’s published guidance marks a significant step for the decentralized finance (DeFi) industry and participants in the liquid staking market. The regulator emphasized that these recommendations reflect its current position; however, they are not legally binding in future Commission decisions. A similar approach has been previously applied by the SEC regarding traditional cryptocurrency staking.
According to DeFiLlama, as of August 2025, the total value locked (TVL) in liquid staking protocols reaches nearly $67 billion. This underscores the scale and relevance of the issue for investors and institutional market players.
Experts’ Reactions and Internal SEC Criticism
Most market participants have welcomed the SEC’s new position. Experts believe that the regulator’s decision opens up new opportunities for institutional investors and will foster the development of secondary markets for liquid staking tokens.
“Institutions can now confidently integrate LST into their products, which will undoubtedly attract new revenue sources, expand the client base, and enable the creation of secondary markets for these assets.”
At the same time, not all SEC members supported the Commission’s position. In particular, Commissioner Caroline Crenshaw emphasized that the new guidance, in her opinion, “is based on shaky facts,” contains legal assumptions, and may be insufficiently substantiated for practical application.