Crenshaw argued that the SEC Division of Corporate Finance’s statement, released earlier this week, is built on a shaky foundation of unrealistic assumptions about how liquid staking actually operates in the real world.
“This is a theoretical exercise, not regulatory clarity,” Crenshaw said, warning that the memo could leave crypto projects even more unsure about their legal footing.
The staff memo reportedly includes several layered assumptions, which Crenshaw claims bear little resemblance to actual industry practices. She noted that even footnotes in the document admit that its interpretations are only valid if the assumptions hold true—essentially rendering the guidance moot the moment a platform does anything slightly differently.
Adding to the confusion, Crenshaw emphasized that the statement is not the SEC’s official position but merely reflects the opinions of staff members. For companies offering liquid staking services, this means there is no legal safety net. “Instead of providing clarity,” she stated, “this memo just raises more questions.”
Crenshaw concluded with a blunt warning: projects operating in the liquid staking space should exercise caution, as the regulatory path forward remains uncertain.
The post SEC Commissioner Slams Liquid Staking Memo as Confusing and Detached from Reality appeared first on Coindoo.
