SEC Declares Liquid Staking Tokens Aren’t Securities — Clearer Paths Ahead for DeFi & Institutional Players

What the Release Covers

• Defined Liquid Staking: The SEC describes liquid staking as depositing crypto assets (e.g. ETH or SOL) with a protocol provider and receiving SRTs on a one-to-one basis—maintaining liquidity while earning staking rewards.
• Receipts, Not Investments: Under the Guidance, SRTs represent proof of ownership, carrying no promise of profit via managerial effort—thus exempt from the Howey Test. 
• Eligible Providers: Protocol-based and third-party liquid staking providers (like Lido, Marinade Finance, JitoSOL, Stakewise) may qualify for exemption—provided they execute only automated or custodial services. 
• Important Limitations: The SEC clarified the ruling does not apply to restaking protocols (e.g., EigenLayer) or cases where SRTs convey business-like rights or pooled returns. 

Why It Matters Globally

Coinccino Insight

“This SEC statement is more than regulatory housekeeping—it’s a signal that liquid staking is finance infrastructure, not speculation. By clearly defining roles and token types, regulators are carving out room for DeFi to operate under U.S. securities frameworks. Institutional, retail, and regional innovators all stand to gain.”