SEC explains that the liquid liquid is not safe among the Project Crypto Push star-news.press/wp
The US Securities and Stock Exchange Committee (SEC) continues its goal in providing organizational clarity of the encryption industry. This time, the Committee’s Institutional Finance Department stated that it does not look at the liquid liquid activities as securities.
The SEC Department announces that the liquid liquid activities are not securities
in SEC launchThe Foundation’s Finance Department said that the liquid liquid activities are not seen in relation to the protocol, which includes the display and sale of securities in the meaning intended in the Securities Law.
As such, the SEC Division said that the participants in this exciting activity do not need registration with the Transactions Committee that falls under the law or those that fall within one of the law exemptions from registration.
Moreover, the division of corporate financing also mentioned that it is not seen by the offer and sale of the distinctive symbols to receive the liquid as securities, unless the deposited encoding assets are part of the investment contract or subject to an investment contract.
In line with this, the committee department announced that the liquid service providers participating in the process of distinctive symbols for issuance, issuance and recovery do not need to register these transactions. This also applies to people participating in secondary market offers and sales of these symbols.
The only exception is whether the covered encryption assets deposited are part of an investment contract or are subject to an investment contract. This last organizational guidance comes a few days after the SEC launched the Crypto Project.
The Corporate Finance Department indicated that this last statement is part of the efforts made to provide greater clarity in the application of federal securities laws to encryption assets. It should be noted that the President of the SEC Paul Atkins, which was previously mentioned during the launch of the Project Crypto that most of the encryption assets are unexpected.
What does it mean for the encryption industry
This last directive from SEC is a huge batch of the encryption industry, taking into account how liquid savings have become an integral part of this industry. This path is expected to pave the way for the committee to agree to this restricted activity of Solana federations.
As said Coingepe, I sent the ETF BitWise and Vaneck exporters, along with JITOLABS, Jito Foundation, the Solana Policy, and Multicoin Capital, a letter to the agency that urges them to agree to the liquid codes (LSTS) for these small boxes and other reconnaissance boxes.
Moreover, it is positive for liquid liquid protocols such as JITO, Marinade Finance, Lido and Etherfi. This means that LSTS is like Jitosol, Jupsol, Steth and Bnsol are not securities. It is also positive for the original symbols of these protocols.
Meanwhile, the stakeholders in Crypto commented on this last directive from SEC. Jito Labs’s lawyer, Rebecca Retig, indicated that the Supreme Education Council made it clear that liquid liquid activities do not create a treatment for securities because they are not entrepreneurship or administrative activities. She added that LSTS is not securities and that they are ready to see them in the circulating investment funds.
This is what we were waiting for … Secgov Just drops guidance about the liquid liquid activities 💦
TL; DR – The TX SEC liquid (in line W to the previous POS instructions for SEC) B/C does not create no entrepreneurship/administrative activities.
– LSTS is not securities. (Ready to see them … pic.twitter.com/hlnitb1er6– RibecCarettig1) Aug 5 2025
The Nate Gerabs market expert considered that this directive was the last obstacle to agreeing to agree to go into Spot Ethereum ETFS. He added that the reason for this is that LSTS will be used to help manage liquidity in these boxes, which was a source of concern for the committee.
SEC says some distinctive liquid codes are not securities …
Think of the last obstacle until SEC agrees to go into Spot ETH ETFS.
the reason?
Distinctive liquid symbols will be used to help manage liquidity with Spot ETH investment funds, which was a source of concern for SEC. pic.twitter.com/tkjbeoqvnp
– nate gelaki (nateraci) Aug 5 2025
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Alignafe Adeyemi
Boluwatife Adeyemi is a writer and editor of encryption news that covers topics that exceed several ports. Its speed and alacity covering uniform break updates. He has a talent to simplify the most technical concepts and make them easy to understand beginners in encryption. Boluwatife is also a lawyer, a law certificate from the University of Ibadan. It also holds a certificate in digital marketing. Away from writing, he is a fan of thirsty basketball, traveler, and part -time Degen.
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2025-08-05 18:12:00
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