The SEC’s guidance on liquid staking is seen as a win for the crypto industry, with stakeholders praising it as a step forward for DeFi and institutional adoption. This decision allows institutions to integrate liquid staking tokens into their products, potentially driving new revenue streams and expanding customer bases.

Liquid staking involves depositing crypto assets and receiving staking receipt tokens in return, which can be used in DeFi without waiting for funds to be unstaked. The SEC’s guidance is based on the Howey test, with certain liquid staking activities not considered securities offerings if they involve only administrative functions.

Despite industry support, the SEC’s liquid staking guidance has faced criticism internally from Commissioner Caroline Crenshaw. She argues that the statement lacks regulatory certainty and relies on shaky assumptions. However, the wave of institutional adoption that may result could benefit retail traders and improve the offering of DeFi services.

Read more at Cointelegraph: SEC Guidance on Liquid Staking a Win for DeFi, Institutions