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 th

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