The SEC clarifies that liquid staking is "not a security"! Will Bitcoin and crypto assets spot ETFs welcome significant favourable information?

The U.S. Securities and Exchange Commission (SEC) recently issued a statement, clearly indicating that liquid staking (LST) activities do not fall under the scope of securities issuance and sales. This move brings legal clarity to the crypto market, especially having a profound impact on mainstream public chains based on proof of stake (PoS) such as Ethereum (ETH) and Solana (SOL) and their ecosystems. So, how will the SEC's statement affect the spot crypto assets ETF market? This article takes you for an in-depth analysis.

SEC clearly states for the first time that LST is not a security, significantly reducing legal risks

The SEC's financial department stated that liquidity staking activities do not involve the issuance or sale of securities and therefore do not need to be registered under the Securities Act. This means that crypto protocols and fund managers do not need to report LST products to the SEC, allowing investors to legally participate in related DeFi activities. RIV Chairman Paul Atkins stated that this is a key step for the SEC to bring regulatory clarity to the crypto industry, which will promote the compliant development of the U.S. crypto market.

The LST market response is enthusiastic, and the market capitalization of mainstream coins has surged

Stimulated by favorable news from the SEC, the market capitalization of liquid staking tokens (LST) increased by 3% within 24 hours, reaching a total market capitalization of 86.3 billion USD. The highest market cap LSTs include Lido Staked Ether (STETH) and Wrapped stETH (WSTETH), reaching 32 billion USD and 14 billion USD respectively. The improvement in legal clarity provides a solid foundation for investors and institutions to further participate in the LST ecosystem.

Spot Crypto ETF welcomes new opportunities, issuers can participate in staking to earn rewards

The SEC's statement constitutes a significant boost for the Spot Crypto Assets ETF market. In the future, issuers of Spot Ether ETFs in the United States will be able to legally participate in liquid staking, creating additional yields for clients and enhancing product competitiveness. This will not only help expand the ETF market size but also drive more institutional funds into Ethereum, Solana, and other PoS public chains, further activating the entire crypto ecosystem.

Legal clarity facilitates DeFi and institutional adoption, the altcoin market benefits

The SEC's clear stance not only reduces legal risks but also brings a new wave of growth momentum to the DeFi space and PoS altcoins. As the regulatory environment becomes more favorable, more institutions and investors will participate in liquid staking and related DeFi products, driving market scale and innovation development.

Conclusion

The SEC clarifies that LST is not a security, bringing legal certainty and new growth momentum to the Spot crypto ETF and DeFi market. In the future, as the regulatory framework continues to improve, both Spot ETF issuers and investors will benefit from this policy dividend.