The American stock market watchdog SEC has announced in a new statement that certain liquid strike activities are not seen as offering effects. This makes the supervisor take a clear step towards
What is liquid strike?
At Liquid STACK, investors secure their crypto in a network, but receive a special ‘liquid strike token’ in exchange. This token represents both the stake and the rewards and is tradable. This way their capital remains active, while they continue to participate in a strike.
These tokens can also be used on other platforms, such as in Defi or as collateral for loans. The SEC now states that this construction, depending on the circumstances, falls outside the securities law of 1933 and 1934. A better defined regulatory framework for crypto in the United States.
Interest for crypto-etfs
The timing of the statement is striking: large financial parties such as Vaneck, Bitwise and Jito Labs have recently submitted requests to the SEC to launch Liquid STAKK-ETFs. These funds focus on Solana (SOL), among others.
According to Defillama, there is now nearly $ 67 billion in Liquid strike protocols. Ethereum (ETH) is responsible for the majority of around 51 billion dollars.
SEC changes course under Atkins
The statement fits within the broader change of course since Paul Atkins took over the chairmanship of the SEC. Where the previous chairman Gary Gensler mainly enforced afterwards, Atkins opts for clear guidelines in advance.
“We make it clear which crypto activities do not fall under our regulation,” said Atkins in a press release. Under his leadership, the SEC works on ‘Project Crypto’, an initiative to modernize the rules on digital assets.
This also includes the recent approval for so-called in-child transactions at Bitcoin (BTC) and Ether ETFs. Investors can immediately exchange between ETF shares and the underlying crypto, without the intervention of cash.
Source: https://newsbit.nl/sec-liquid-staking-in-crypto-valt-niet-onder-effectenwet/
