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ARTICLE · 18 AUGUST 2025

SEC Staff Statement On Liquid Staking: A Step Toward Clarity In Crypto Regulation

Gesmer Updegrove LLP
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On August 5, 2025, the Securities and Exchange Commission's Division of Corporation Finance issued a staff statement addressing a rapidly evolving area of crypto finance: liquid staking.

United StatesTechnology
Braeden Anderson
Braeden Anderson

On August 5, 2025, the Securities and Exchange Commission's Division of Corporation Finance issued a staff statement addressing a rapidly evolving area of crypto finance: liquid staking. The statement—released under the SEC's Project Crypto initiative—marks a notable step toward clarifying the agency's application of federal securities laws to certain crypto asset activities.

What Is Liquid Staking?

Liquid staking refers to the process of committing crypto assets to a proof-of-stake blockchain network through a protocol or third-party provider while receiving in return a "liquid staking receipt token." This token evidences the staker's ownership of the underlying assets as well as their right to receive rewards generated by staking. Unlike traditional staking, which locks assets until the end of the staking period, liquid staking allows token holders to retain liquidity and transferability while continuing to earn rewards.

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