US SEC Commissioner Caroline A. Crenshaw criticized a recent staff statement from the SEC’s Division of Corporation Finance relating to liquid staking, arguing it creates confusion rather than clarity. Crenshaw remarked that the statement relied on unverified assumptions and contributed to a lack of direction for liquid staking providers, warning them to proceed with caution. In contrast, SEC Chair Paul Atkins called the statement a significant step forward for defining crypto asset activities outside the SEC’s jurisdiction. Commissioner Hester Peirce also expressed concerns about the clarity of the SEC's communication, likening liquid staking to traditional practices of depositing goods with an agent. Liquid staking allows users to stake their assets while maintaining liquidity through tokenized versions, significantly impacting the cryptocurrency market, which currently has around $67 billion locked in various protocols, primarily in Ethereum.

Source 🔗