SEC Commissioner Crenshaw Criticizes Division’s Liquid Staking Statement

SEC Commissioner Crenshaw Challenges Liquid Staking Statement

SEC Commissioner Caroline Crenshaw has openly criticized the recent liquid staking statement issued by the Division of Corporation Finance. In her statement dated August 5, she argued that the division’s assumptions lack support and do not reflect the realities of the crypto industry.

“Some Things Are Better Left Unsaid,” Says Crenshaw

Crenshaw described the Division’s statement as “stacking factual assumption on top of factual assumption,” creating a “wobbly wall of facts” without a solid foundation. She emphasized that this statement should not comfort companies involved in liquid staking, especially since it only represents the views of the division’s staff, not the entire SEC.

SEC Chair Paul Atkins Supports the Division

In contrast, newly appointed SEC Chair Paul Atkins released a statement supporting the Division of Corporation Finance’s position. He highlighted the importance of providing clear guidance on how federal securities laws apply to emerging crypto technologies and activities.

“A Significant Step Forward,” Says Chair Atkins

Atkins called the statement “a significant step forward” in clarifying which crypto activities fall outside SEC jurisdiction. He praised the SEC’s Project Crypto initiative for delivering results that benefit the public and bring regulatory clarity.

Ongoing Debate Reflects Crypto Regulation Challenges

This disagreement between Crenshaw and the Division illustrates the challenges regulators face in defining crypto asset rules. While the Division seeks clarity for liquid staking, Crenshaw’s critique shows that some experts find the guidance incomplete or premature.

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