Commissioner of the US SEC Slams Agency said in Liquid Staking: “Muddies the Waters”
US SEC Commissioner Caroline Crenshaw strictly criticized a staff statement released on Tuesday by the regulator’s financial division praising the SEC position on liquid staking activitiesIt is said that it created more confusion than clarity.
“Some things are better left,” Crenshaw’s rebuttal started, where he Argued that the staff’s statement “muddies only the water” by relying on unspecified assumptions.
Crenshaw said the statement creates a “wobbly wall of facts that there is no anchor in the reality of the industry,” warning liquid staking entities to continue carefully: “Caveat Liquid Staker.”
The SEC staff statement states that some of the liquid staking activities Do not form security offeringsIt depends on how they are structured. Chair Paul Atkins called the transfer of a “significant step forward” to drafting which crypto asset activities were falling out of the agency’s jurisdiction.
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The SEC Commissioner Hester Peirce also released a Comment After the agency’s statement, the dispute that liquid staking is a familiar skill similar to depositing goods to an agent that releases receipts.
“The statement today clarifies the division’s view that liquid staking staking activities related to protocol staking are not involved in the offer and sale of security,” Peirce wrote.
https://www.youtube.com/watch?v=ry9MI57PBJS
What is liquid staking, and why is it important?
Lets liquid staking Crypto holders earn rewards By staking their genitals while using a tokenized version (liquid staking tokens) to trade, borrow or otherwise participate in the defi. It increases liquidity and flexibility in proof-of-stake networks, which enables better use of capital and greater access to staking benefits.
Liquid staking quickly grown in a significant cryptocurrency market segment, with nearly $ 67 billion locked in various protocols, based on Delete Data.
Currently, Ethereum leads this space, representing approximately $ 51 billion of total. Top platforms in liquid staking include Lido Finance, Rocket Pool and Ankr, encouraging most of this growth by enabling users to stake assets while maintaining liquidity.
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