However, Crenshaw pushed back, arguing that the statement adds confusion rather than clarity to the legal treatment of liquid staking.
“Instead of clarifying the legal landscape, today’s statement, like other recent staff statements before it, only muddies the waters.”
She noted that any staking activity not fitting the precise conditions described in the document would fall outside its scope. Because of this, she argued, the guidance offers little protection or direction to those involved in staking-related services.
Crenshaw also reminded investors that the guidance represents the opinion of SEC staff, not the official stance of the Commission itself. As such, she believes it should have been framed as a cautionary alert, not a position of regulatory clarity.
According to Fischer, this mirrors how Lehman reused client assets to back high-risk trades. She argued that liquid staking could replicate the same vulnerabilities without strong regulatory oversight.
The former SEC official also highlighted the risks of relying on token issuers, the possibility of long delays when unstaking, and the threat of technical failures or hacks. Together, these factors could amplify systemic risk across the crypto sector.
