SEC staff liquid-staking guidance leaves regulatory questions, could be contested

The SEC staff guidance on liquid staking could be a boon for institutions that want to include the technology in products, but there’s still uncertainty.

The US Securities and Exchange Commission’s latest comments on liquid staking have sparked a mix of optimism and concern, highlighting the regulatory gray area surrounding one of crypto’s fastest-growing sectors.

While some in the industry see the nonbinding guidance as a step forward for institutional and retail adoption, others warn it leaves key legal questions unresolved and could face challenges down the line.

“First, these guidelines are not law… and they could be contested at some point,” Scott Gralnick, head of institutional staking at Marinade, told Cointelegraph.

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