The United States Securities and Exchange Commission (SEC) recently issued guidance aiming to clarify the regulatory standing of liquid staking arrangements. However, this move has been met with strong criticism from within the agency, with one commissioner and a former senior official warning that the current approach introduces confusion and could even expose the crypto market to risks reminiscent of the 2008 financial crisis.
Liquid staking, a popular mechanism in the decentralized finance (DeFi) ecosystem, allows users to “stake” their cryptocurrencies – essentially locking them up to support a blockchain network – while simultaneously receiving a tradable “receipt token” representing their staked assets. These receipt tokens can then be used in other DeFi protocols, offering users liquidity and additional yield opportunities. The appeal lies in unlocking capital that would otherwise be idle in traditional staking.
On 5 de agosto de 2025, the SEC’s Division of Corporation Finance released a statement suggesting that certain liquid staking arrangements, particularly those involving receipt tokens, might not fall under existing securities regulations. This was perceived by some as a step towards greater clarity for the burgeoning liquid staking sector.
However, Commissioner Caroline Crenshaw quickly voiced her dissent. In a critical statement, she argued that the guidance, far from providing clarity, “only muddies the waters.” Crenshaw highlighted two primary deficiencies: the guidance relies on “questionable assumptions” about how liquid staking operates, and its legal conclusions are “heavily caveated,” making them impractical for firms seeking regulatory compliance. She stressed that any staking activity deviating from the precise conditions described would fall outside the guidance’s scope, offering little practical direction. Furthermore, Crenshaw reminded the public that this guidance reflects the opinion of SEC staff, not an official position of the Commission itself, suggesting it should have been framed as a cautionary alert.
Echoing these concerns, Amanda Fischer, a former SEC Chief of Staff under current chairman Gary Gensler, drew a striking parallel between liquid staking and the risky financial practices that contributed to the collapse of Lehman Brothers in 2008. Via a post on X (formerly Twitter), Fischer warned that liquid staking’s structure could lead to “cascading failures” within the crypto markets.
Fischer’s concern stems from the practice where users deposit digital assets and receive a synthetic version that can be re-used to earn further rewards. This, she argues, mirrors how Lehman Brothers re-used client assets to back high-risk trades, creating a dangerous leverage effect. Without robust regulatory oversight, she believes liquid staking could replicate similar vulnerabilities. She further underscored risks such as over-reliance on token issuers, potential long delays in “unstaking” assets, and the ever-present threat of technical failures or hacks. These combined factors, she warned, could amplify systemic risk across the entire crypto sector.
The contrasting views within the SEC highlight the ongoing challenge of regulating a rapidly evolving crypto landscape. While the industry seeks clear guidelines to foster innovation, regulators grapple with defining complex digital assets and preventing systemic risks. The debate surrounding liquid staking underscores the critical need for a comprehensive and unified regulatory framework that can provide both clarity for market participants and robust protection for investors, preventing future financial tremors.
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