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DeFi Cheers as SEC Affirms Liquid Staking Protocols Aren’t Securities
The SEC’s new guidance on liquid staking boosts governance tokens like LDO and RPL, while TVL across protocols holds steady at $67 billion.
Aug 6, 2025, 1:18 p.m.
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What to know:
- LDO and RPL tokens rose 4.5% and 10.5%, respectively, following the SEC’s Tuesday statement affirming liquid staking protocols don’t trigger securities laws.
- Total liquid staking TVL remains steady at $67B, with Lido maintaining a dominant $31.7B (47%) share, according to DeFiLlama.
- Legal clarity may unlock institutional inflows, with industry leaders welcoming the decision as validation for decentralized, non-custodial staking infrastructure.
The SEC’s Division of Corporation Finance issued a staff statement on Tuesday, declaring that properly structured liquid‑staking protocols and their receipt tokens generally do not constitute securities under U.S. law.
This clarity has led to modest upticks in token prices and protocol activity. Lido’s governance token, LDO, rose by approximately 4.5%, from $0.88 to $0.92, before retreating to support. Similarly, Rocket Pool’s RPL token climbed 10.5%, reaching $7.28 from $6.59, before also giving up some gains.
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DeFiLlama data reveals that total liquid‑staking TVL stands at roughly $67 billion, with Lido dominating at $31.7 billion, maintaining a 47% market share. Despite the token price action, inflows to staking protocols remained stable, with no significant shift in capital rotation.
Liquid staking tokens and governance tokens tied to decentralized staking platforms experienced a measured positive response. CoinGecko and DeFiLlama data indicate modest upward movement, with several tokens rising between 5% and 10%.
Rather than sparking a torrent of inflows, the SEC’s clarification appears to have established baseline confidence. The ruling reinforces trust in decentralized staking models that previously fell in a regulatory gray area.
The SEC’s clarification was quickly praised across crypto legal circles. Rebecca Rettig, part of Jito’s legal team, wrote on X that it was a "true team effort across ecosystems" and hinted that liquid staking tokens could be seen in ETFs.
Lido's chief legal officer Sam Kim added: "This is a big win for stakers since they can now participate in staking, have the benefit of liquidity, while maintaining ownership of their staked assets."
The regulatory clarification could lead to a wave of institutional capital, especially as the DeFi race to capture the best yield continues to heat up.
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