TL; PhD
- The SEC confirms that tokens under liquid staking arrangements do not qualify as securitiesGives protocols like Lido a legal green light to carry out their staking services without fear of enforcement action.
- Over $24 billion totals are lockedLido is now expanding its services in the US and can welcome participation from banks, exchanges and asset managers.
- Analysts predict that the ruling will encourage innovation among fluid staking providers Coordinate tokens and governance structures to meet robust regulatory standards and promote broader network participation.
Lido Finance Celebrating the landmark Decided US Sec makes clear that ether token steth on its pile is not security. This guidance brings much-needed regulatory certainty to the fluid staking market and removes important barriers to institutional adoption. With a total of over $24 billion locked, Lido is now able to expand its service in the US. Participation is welcome from banks, exchanges and asset managers.
Big Days for Ethereum: Second Clarity Regarding Liquid Staking
Yesterday’s SEC guidance confirms that liquid staking and receipt tokens like Steth do not constitute a securities, providing the much needed guidance that Lido and the industry need. As a major liquid staking… https://t.co/h2wn1bwksf
– Lido (@lidofinance) August 6, 2025
Liquid staking background
Liquid Staking allows users to earn rewards by delegating Ether to a Valtter node while retaining the liquidity of the token. Lido The problem blew as a representative token that can be traded across the defi platform, earning staking yields. The model attracted a user base seeking yield without locking funds, helping Lido secure a total of over $24 billion locked in Ethereum.
SEC clarifies non-security status
The US SEC issued guidance confirming that tokens issued under liquid staking arrangements are not eligible as securities under federal law if they are structured without a promise of centralized profits. This clarification addressed concerns that Steth could face unregistered securities rules. By removing uncertainty, the SEC has given protocols like Lido a legal green light to carry out staking services without fear of enforcement action.
Markets and institutional reactions
Lido Dao and his community celebrated the decision as a confirmation of decentralization victory and their governance model. Multiple major exchanges revealed intentions to list or enhance support for STETH trading Without regulatory concerns, and institutional custodians expressed interest in providing liquid staking services to their clients. Observers say the development can unlock billions of new capital for Ethereum staking By removing legal obstacles that previously blocked banks and asset managers.
Roadmap for Defi Growth
Analysts predict that the ruling will encourage innovation among fluid staking providers Adjust tokens and governance structures to meet robust regulatory standards. Competing platforms can rework their pricing models and decentralization capabilities and follow the example of Lido, which is credited by the SEC as the key to non-security status.
Beyond Ethereum, this precedent could shaping the staking of liquids in blockchains of other proofs, leveraging the Steth liquidity and fostering the growth of interoperable defi applications that promote broader network participation.
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.


