The US Securities and Exchange Commission (SEC) has provided significant guidance regarding liquid staking tokens, marking a notable regulatory advancement for decentralized finance (DeFi) and institutional adoption of digital assets. The SEC's staff indicated that, under certain conditions, activities related to liquid staking and the receipt tokens generated do not represent securities offerings. As a result, institutions can commence integrating liquid staking tokens (LSTs) into their products, which is anticipated to open new revenue streams and foster customer base expansion. The guidance also allows for the creation of secondary markets for staked assets, benefiting both retail and institutional traders. However, some skepticism remains within the agency, with Commissioner Caroline Crenshaw expressing concerns about the certainty of the guidance. The SEC's stance places emphasis on the Howey test to evaluate these activities, suggesting that those performing mere administrative functions, like issuing staking tokens, may not need to register as securities. This regulatory clarity is expected to enhance liquidity and foster innovations in the DeFi sector.

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