SEC’s Crenshaw blasts liquid staking guidance as misaligned with reality
The post SEC’s Crenshaw blasts liquid staking guidance as misaligned with reality appeared on BitcoinEthereumNews.com.
In a scathing statement on Tuesday, SEC Commissioner Caroline Crenshaw slammed the agency’s new liquid staking guidance, accusing the Division of Corporation Finance of building “a wobbly wall of assumptions” that fails to reflect how the industry actually operates. The guidance declares that liquid staking activities do not constitute securities transactions. This means participants would not be required to register such activities with the SEC. This move could ease regulatory pressure on blockchain networks and DeFi platforms offering these services. However, Crenshaw believes this interpretation is dangerously misleading. Crenshaw said the Liquid Staking Statement builds one assumption on top of another, creating what she described as a shaky wall of facts disconnected from the realities of the industry. She added that the guidance provides little clarity, lacks a legal foundation, and merely reflects the SEC staff’s views—not the Commission’s official position. Crenshaw criticized the guidance for drawing “definitive declarations about how liquid staking works” without providing evidence or addressing the diversity of staking mechanisms across blockchain ecosystems. She warned that the guidance fails to offer meaningful direction for companies trying to stay compliant. SEC’s liquid staking guidance sparks division Earlier in the day, the SEC’s Division of Corporation Finance released a legal interpretation stating that liquid staking—a system that allows users to earn staking rewards while still being able to trade or move their staked tokens—is not a securities offering. This clarification means platforms offering liquid staking services may not have to register with the SEC under current securities laws, potentially opening the door for broader innovation and user adoption. The stance represents a continuation of the pro-innovation regulatory steps rolled out under the Trump-era Project Crypto, which promoted hands-off regulatory approaches in certain aspects of the crypto economy. SEC Commissioner Hester Peirce also made a statement after the release…
