SEC Confirms: Liquid Staking Is Not a Securities Offering

In a major win for Ethereum and the broader decentralized finance (DeFi) sector, the U.S. Securities and Exchange Commission (SEC) has officially stated that Liquid Staking Activities, when done in connection with Protocol Staking, do not constitute the offer or sale of securities.

The statement, issued on August 5, 2025, by the SEC’s Division of Corporation Finance, clarifies one of the most debated topics in crypto regulation—and it’s overwhelmingly positive for Ethereum’s staking ecosystem.

What Did the SEC Say?

The SEC’s view is clear:

• Liquid staking is not a securities offering: Participants engaging in liquid staking tied to protocol-level staking do not need to register their activities under the Securities Act of 1933 or the Exchange Act of 1934.
• No SEC registration required: These transactions are not subject to securities laws, nor do they require exemptions from registration—removing significant legal uncertainty for users and platforms.
• Staking receipt tokens are also safe: As long as the underlying deposited assets aren’t part of an investment contract, the offer and sale of staking receipt tokens also do not count as securities offerings.

This guidance offers much-needed clarity to staking protocols and platforms like Lido, Rocket Pool, and EigenLayer, which have built large ecosystems around liquid staking models.

Why This Is Big for Ethereum and DeFi

Ethereum’s shift to Proof-of-Stake has made staking central to its security and operation. Liquid staking allows users to stake ETH while still maintaining liquidity through tradable tokens. This model fuels large portions of the DeFi space.

The SEC’s green light now:

• Removes legal uncertainty for staking providers
• Protects users from future enforcement risks
• Encourages more institutional participation in Ethereum staking
• Reinforces Ethereum’s role as the backbone of DeFi and staking

In short, this announcement helps secure Ethereum’s future and sends a powerful signal that the U.S. is open to staking innovation—as long as it’s protocol-based and transparent.