Kategorie: Ethereum News

• SEC staff said certain liquid staking activities do not constitute the sale of securities in a new clarification.
• The statement clarifies that “Staking Receipt Tokens” do not need to be registered under securities laws.
• SEC Chair Paul Atkins called the move a “significant step forward in clarifying the staff’s view” on crypto activities.

In a significant and widely welcomed move, the US Securities and Exchange Commission’s (SEC) Division of Corporation Finance has issued a statement clarifying its view that certain liquid staking activities associated with protocol staking do not constitute the sale of securities.

This clarification, released on August 5, provides a measure of long-sought regulatory clarity for a key and rapidly growing sector of the cryptocurrency ecosystem.

The SEC Division’s statement specified that parties involved in the minting, offering, and redeeming of certain liquid staking tokens are not required to register with the federal regulator under the securities laws.

In essence, the offer and sale of these “Staking Receipt Tokens,” as the statement referred to them, are not considered securities offerings unless the underlying deposited crypto assets are themselves part of or subject to an investment contract.

This is a pivotal clarification for the crypto industry. In the world of crypto, staking is the process of locking up crypto assets, such as Ethereum (ETH), to help secure a proof-of-stake (PoS) blockchain network in exchange for rewards. Liquid staking is a popular variant of this process.

When users stake their crypto assets through a liquid staking protocol, they receive a tokenized version of their staked assets, such as sETH (staked ETH).

The key feature of these “liquid staking tokens” is that, unlike traditionally staked assets, they are not locked up; they remain liquid and can be traded, lent, or used in other decentralized finance (DeFi) applications while the original assets continue to earn staking rewards.

SEC Chairman Paul Atkins framed the announcement as part of a broader commitment to providing clear guidance on emerging technologies.

“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,” Atkins stated.

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.

SEC Commissioner Hester Peirce, a long-time advocate for regulatory clarity in the crypto space, also welcomed the statement.

She explained that it clarifies that liquid staking activities in connection with protocol staking do not constitute the selling of securities.

“Instead, it is a variant on the longstanding practice of depositing goods with an agent who performs a ministerial function in exchange for a receipt that evidences ownership of the goods,” she added, providing a useful analogy to traditional commercial practices.

Industry leaders celebrate, eyes turn to Ethereum ETFs

The crypto industry’s reaction to the SEC’s clarification has been overwhelmingly positive. Alexander Grieve, VP of Government Affairs at the crypto investment firm Paradigm, celebrated the move.

Miles Jennings, Head of Policy & General Counsel at the prominent crypto-focused venture capital firm Andreessen Horowitz (a16z), went a step further, calling it a “huge win.”

This development is particularly timely and relevant for the issuers of spot Ether ETFs. These firms, such as Bitwise, have been actively trying to get the SEC’s approval to allow staking for their Ethereum ETFs, a feature that would enable the funds to generate additional yield for their investors.

The SEC’s new clarification on liquid staking is seen by many as a crucial step towards making that a reality.

Nate Geraci, President of NovaDius Wealth Management, expressed his optimism, suggesting this could be the final piece of the puzzle.

“Think last hurdle in order for SEC to approve staking in spot eth ETFs,” he said. Geraci further explained how liquid staking tokens could be a key part of the solution: “Liquid staking tokens will be used to help manage liquidity w/in spot eth ETFs, something that was a concern for SEC.”

By providing a liquid, tradable representation of the staked assets, these tokens could help ETF issuers manage the daily inflows and outflows of their funds more efficiently, addressing one of the SEC’s previous operational concerns.

The post SEC staff statement on liquid staking may pave way for staking in spot Ether ETFs appeared first on CoinJournal.

• Linea will auto-stake bridged ETH using Lido V3’s stVaults.
• Users earn passive ETH staking rewards without active input.
• Launch set for October 2025 with strong security safeguards.

In a move that could reshape yield generation on Ethereum Layer 2s, Linea, an Ethereum scaling network developed by Consensys, has unveiled plans to integrate Lido V3’s staking infrastructure.

The new feature, called Native Yield, will automatically stake ETH that users bridge to Linea, allowing DeFi participants to earn Ethereum-native staking rewards without active participation.

Notably, the integration marks a significant departure from traditional incentive models in DeFi, offering a streamlined and sustainable method for yield generation that bypasses the need for token emissions or high-risk lending protocols.

While the official launch is scheduled for October 2025, the announcement has already sparked conversations about its potential impact on Ethereum’s broader ecosystem.

Turning idle Ethereum (ETH) into active DeFi yield

At the core of Linea’s strategy is the belief that ETH capital sitting idle on Layer 2 networks is a missed opportunity.

Currently, ETH bridged to most L2s must be manually deployed in DeFi protocols to generate returns.

However, with Native Yield, Linea aims to flip that model by auto-staking bridged ETH via Lido V3’s smart contracts.

This system not only simplifies staking for users but also addresses a broader issue that Linea says is plaguing DeFi: incentive fragmentation.

According to Linea, the current model of chasing high APRs across multiple chains has become unsustainable, with users constantly migrating liquidity for short-term gains.

Native Yield seeks to create a more stable environment by generating sustainable 3–5% staking rewards derived from Ethereum’s proof-of-stake consensus.

Built with Lido V3’s stVaults and safeguards

The technical foundation of this system lies in Lido V3’s stVaults—non-custodial smart contracts designed for trustless staking.

These contracts are operated by Node Operators selected by Linea, and withdrawal keys are held in secure contracts, not by any centralised party.

This design ensures that staking is transparent, permissionless, and secure.

To maintain capital efficiency while ensuring smooth user withdrawals, Linea will implement a Liquidity Buffer.

This buffer consists of unstaked ETH to accommodate high withdrawal demand. In periods where demand exceeds the buffer, users may receive stETH, which can be traded on secondary markets.

This design minimises friction while keeping user funds productive.

Additionally, the system incorporates EIP-7002, a mechanism that allows forced unstaking in the event of governance failures or security risks.

If required, the system can disengage from DAO control using an “escape hatch” mechanism, providing an extra layer of protection for users.

To manage the auto-staking process, Linea has introduced a role called the Native Yield Operator.

This operator is responsible for overseeing the staking flows and ensuring the system stays balanced.

However, governance is not centralised. If liquidity thresholds are breached or performance falters, users themselves can initiate rebalancing actions or trigger withdrawals.

These built-in safeguards aim to make Linea’s staking ecosystem resilient to both operational challenges and governance attacks.

In a space where smart contract risks and centralised control remain key concerns, Linea’s architecture stands out for its proactive risk mitigation measures.

The road ahead

While many L2s rely on token incentives to attract capital, Linea is charting a different course.

By offering sustainable, Ethereum-native yields without the need for token emissions or temporary rewards, Linea believes it can attract long-term capital.

This shift could improve liquidity depth and trade execution, giving the network a competitive edge in the DeFi space.

Still, not everyone is convinced. Lido V3’s stVaults are relatively new and have yet to be tested at scale.

Some critics argue that more established alternatives, such as StakeWise V3 Vaults, may offer a safer route.

Nonetheless, Linea remains committed to its roadmap and has not indicated any changes ahead of its October launch.

Linea’s Native Yield feature is not just a technical upgrade—it is a strategic effort to redefine how Ethereum Layer 2s compete for liquidity.

By combining staking infrastructure, non-custodial design, and a clear governance framework, Linea is positioning itself as a secure, yield-generating hub for ETH.

If the system proves effective in attracting and retaining liquidity, Linea could establish itself as one of the most capital-efficient and Ethereum-aligned L2 networks.

As the October 2025 launch draws closer, all eyes will be on whether this bold approach can deliver both performance and trust at scale.

The post Consensys’ Linea integrates Lido V3 to automate staking bridged ETH appeared first on CoinJournal.