SEC Liquid Staking Protocol Statement Is A ‘Significant Step Forward,’ Paul Atkins Says

Author

Julia Smith

Author

Julia Smith

About Author

Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

Share

Last updated: 

August 5, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

United States Securities and Exchange Commission (SEC) Chair Paul Atkins called the federal regulator’s Division of Corporation Finance’s statement on liquid staking protocols a “significant step forward” on Tuesday.

Paul Atkins Praises SEC Liquid Staking Statement

In an August 5 statement, Atkins praised the SEC’s updated guidance, which claims that liquid staking activities do not constitute securities under certain circumstances.

“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 said.

“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 added. “I am pleased that the SEC’s Project Crypto initiative is already producing results for the American people.”

Project Crypto Underway At SEC

Atkins’ commentary comes just days after the federal agency unveiled a new initiative called “Project Crypto” at the America First Policy Institute in Washington, D.C., last Thursday.

According to Atkins, the blockchain-focused initiative’s goal is to “modernize the securities rules and regulations to allow America’s financial markets to move on-chain.”

“The SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant,” Atkins said. “We are at a threshold of a new era in the history of our markets.”

The blockchain-oriented program stands in direct contrast to the agency’s previous regulation-by-enforcement approach to the digital asset sector and aligns with a more crypto-friendly White House.

Just last week, the President’s Working Group on Digital Asset Markets released its landmark report providing clear recommendations for federal agencies to construct policy frameworks conducive to digital assets.

Overall, Atkins’ remarks indicate a broader shift within the SEC toward regulatory clarity and innovation, aligning the agency more closely with the federal government’s evolving stance on cryptocurrency as a whole.