SEC Commissioner Caroline Crenshaw Pushes Back On Liquid Staking Statement

United States Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw is pushing back on the Division of Corporation Finance’s recent liquid staking statement in an August 5 statement of her own.

Some Things Are Better Left Unsaid, Caroline Crenshaw Says

According to Crenshaw’s Tuesday statement, the federal regulator slammed the division’s statement, alleging that certain liquid staking activities do not constitute securities, claiming that “some things are better left unsaid.”

“The Liquid Staking Statement stacks factual assumption on top of factual assumption on top of factual assumption, resulting in a wobbly wall of facts without an anchor in industry reality,” Crenshaw said.

“Given its unsupported factual assumptions and circumscribed legal analysis, the Liquid Staking Statement should provide little comfort to entities engaged in liquid staking—especially since, as the statement rightly notes, it only ‘represents the views of the staff of the Division of Corporation Finance,’ not the views of this or any future Commission,” she added.

SEC Chair Paul Atkins Backs Division’s Statement

Crenshaw’s statement is a scathing retort to the SEC Division of Corporation Finance’s liquid staking statement published earlier on August 5.

The statement expressed the division’s views that certain liquid staking activities do not qualify as securities in a bid to provide “greater clarity on the application of the federal securities laws to crypto assets.”

Newly appointed SEC Chair Paul Atkins also published his own statement on Tuesday backing the division’s decision, stating that “the SEC is committed to providing clear guidance on the application of the federal securities laws to emerging technologies and financial activities.”

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. https://t.co/KdIA8RAbVq pic.twitter.com/inUB1asKay

— Paul Atkins (@SECPaulSAtkins) August 5, 2025

“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,” Chairman Paul Atkins said. “I am pleased that the SEC’s Project Crypto initiative is already producing results for the American people.”