United States Securities and Exchange Commission Chair Paul Atkins described the federal regulator’s Division of Corporation Finance statement on liquid staking protocols as a “significant step forward” during remarks made on Tuesday.
SEC Chair Endorses New Liquid Staking Guidance
During his August 5 statement, Atkins highlighted the SEC’s updated guidance, which indicates that liquid staking activities may not qualify as securities under specific conditions.
DeFi just scored a massive win in the U.S. 🇺🇸
The SEC has officially stated that liquid staking activities are not securities, confirming what builders and the community have believed all along.
First clarity on stablecoins, now LSTs ⚖️
LFG! Now back to cooking… 🧑🍳 pic.twitter.com/Kr2oll07hu
— Kintsu ⦿ (@Kintsu_xyz) August 5, 2025
“Under my leadership, the SEC is committed to providing clear guidance on the application of the federal securities laws to emerging technologies and financial activities,” Chairman Paul S. Atkins stated.
“Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction,” he continued. “I am pleased that the SEC’s Project Crypto initiative is already producing results for the American people.”
New Project Crypto Initiative Launches
Atkins delivered these comments several days after the federal agency introduced a new program dubbed “Project Crypto” at the America First Policy Institute in Washington, D.C., during last Thursday’s event.
The blockchain-focused initiative aims to “modernize the securities rules and regulations to allow America’s financial markets to move on-chain,” according to Atkins.
“The SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant,” Atkins declared. “We are at a threshold of a new era in the history of our markets.”
This blockchain-centered program represents a sharp departure from the agency’s former regulation-by-enforcement strategy toward the digital asset industry and matches the more crypto-supportive White House administration.
The President’s Working Group on Digital Asset Markets published its groundbreaking report last week, offering concrete recommendations for federal agencies to develop policy frameworks that support digital assets.
Atkins’ statements signal a comprehensive transformation within the SEC toward regulatory transparency and innovation, bringing the agency into closer alignment with the federal government’s changing position on cryptocurrency matters.
Potential Impact on Industry Confidence
The SEC’s clearer stance on liquid staking protocols and launch of Project Crypto could boost investor confidence in the regulatory environment surrounding digital assets. This development may encourage more institutional participation in crypto markets as regulatory uncertainty continues to diminish.
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