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US SEC Releases Latest Guidance: Liquidity Staking Not Within Securities Law Regulation
Summary: In breaking news, the U.S. Securities and Exchange Commission (SEC) stated in its latest guidance that certain liquidity staking activities do not involve securities, and individuals engaging in liquidity staking activities do not need to register with the agency under securities laws. Liquidity staking entities that may not be subject to securities laws include Lido, ...
In breaking news, the U.S. Securities and Exchange Commission (SEC) stated in its latest guidance that certain liquidity staking activities do not involve securities, and individuals engaging in liquidity staking activities do not need to register with the agency under securities laws. Liquidity staking entities that may not be subject to securities laws include Lido, Marinade Finance, JitoSOL, and Stakewise. The SEC noted that the issuance and sale of staking receipt tokens in certain ways and circumstances do not constitute securities issuance and sale, unless the deposit of crypto assets is part of an investment contract. This is particularly relevant for staking cryptocurrencies through software protocols or service providers, and then receiving 'liquidity staking receipt tokens' to demonstrate the staker's ownership of the staked crypto assets and any generated profits.
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Link: US SEC Releases Latest Guidance: Liquidity Staking Not Within Securities Law Regulation [Copy]