{"id":40753,"date":"2025-08-06T13:31:48","date_gmt":"2025-08-06T13:31:48","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40753"},"modified":"2025-08-06T13:31:48","modified_gmt":"2025-08-06T13:31:48","slug":"did-the-sec-just-kill-liquid-staking-market-reaction-on-satoshi-street","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40753","title":{"rendered":"Did The SEC Just Kill Liquid Staking? Market Reaction on Satoshi Street"},"content":{"rendered":"
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When Ethereum decided to go green, it chose a proof-of-stake system, which allowed for liquid staking. The result has been magical. Liquid staking platforms like Lido Finance and Rocket Pool now command billions in total value locked (TVL). But new moves by the SEC are spooking everything.<\/span><\/p>\n

Lido Finance is among the largest DeFi protocols, per DefiLlama. As of August 6, LDO \u25bc-0.82%<\/span><\/span> managed over $31 billion worth of assets and is the second-largest DeFi protocol, only after the high-flying Aave, which has a TVL of over $34 billion.<\/span><\/p>\n

\"The<\/p>\n

(<\/span>Source: DefiLlama<\/span><\/a>)<\/span><\/strong><\/p>\n

SEC\u2019s Guidance on Liquid Staking<\/span><\/h2>\n

Liquid staking platforms are just beginning to gain traction, and more assets are expected to flow to them as platforms choose to move away from energy-intensive mining to greener and more energy-efficient systems. <\/span><\/p>\n

Aware that this industry will only grow, yesterday, on August 5, the United States Securities and Exchange Commission (SEC) <\/span>issued<\/span><\/a> a staff statement clarifying that, in their assessment, certain liquid staking activities and associated tokens do not constitute securities offerings under the Securities Act of 1933 and the Securities Exchange Act of 1934.<\/span><\/p>\n

Notably, the regulator defined liquid staking as a process of staking digital assets via a protocol in return for a \u201cliquid staking receipt token (LST).\u201d Some of these tokens include staked Ether (stETH) offered by Lido Finance or JITOSOL by Jito on Solana. These LSTs are proof of ownership, and all accrue staking rewards, making them among the <\/span>best cryptos to buy<\/span><\/a>.<\/span><\/p>\n

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Lido DAO Token<\/div>\n
Price<\/div>\n
Market Cap<\/div>\n<\/div>\n
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LDO<\/div>\n
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$821.68M<\/div>\n<\/div>\n<\/div>\n<\/div>\n
24h<\/span>7d<\/span>30d<\/span>1y<\/span>All time<\/span><\/div>\n<\/div>\n

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DISCOVER: <\/span>Best Meme Coin ICOs to Invest in 2025<\/span><\/a><\/strong><\/p>\n

DeFi Tokens To Explode?<\/h2>\n

According to the SEC, depending on the facts and circumstances, protocols issuing these tokens are not offering and selling securities since they don\u2019t bear any characteristics of an investment contract under the Howey Test.<\/span><\/p>\n

Paul Atkins, the chair of the SEC, <\/span>said<\/span><\/a> the guidance is a \u201csignificant step forward in clarifying the staff\u2019s view about crypto asset activities that do not fall within the SEC\u2019s jurisdiction.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Atkins added that the agency is further committed to providing clear guidance on \u201cthe application of the federal securities laws to emerging technologies and financial activities.\u201d<\/span><\/p>\n

Far from killing liquid staking, this guidance is seen as a massive step toward providing regulatory clarity in DeFi and for Liquid staking platforms like Rocket Pool, Jito on Solana, and many other similar protocols.<\/span><\/p>\n