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Matthias Knab, Opalesque for New Managers:

Some things are better left unsaid. The SEC's Division of Corporation Finance recently issued a statement on liquid staking activities, claiming to "provide greater clarity on the application of the federal securities laws to crypto assets."

However, rather than clarifying, the statement may have created more confusion, said Commissioner Caroline A. Crenshaw in a release.

According to Commissioner Crenshaw, the lack of clarity stems from two main issues:

• Factual assumptions without evidence: The statement layers assumption upon assumption about how liquid staking works, without citing supporting authority or reflecting actual industry practices.
• Conditional legal conclusions: Buried in footnotes, the staff repeatedly warns that its legal conclusions only apply if all those factual assumptions are true - meaning any deviation in real-world operations could put activities outside the statement's scope.

Given these limitations, the statement offers little reassurance for liquid staking providers. Even small differences between a provider's activities and the hypothetical model described could mean the statement does not apply.

Crenshaw underscores that the statement represents only the views of the......................

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