The cryptographic industry is welcomed by the latest directives of the Securities and Exchange Commission in the United States on the implementation of liquids as a rare regulatory victory, the stakeholders deeming it a major step for decentralized finance and the institutional adoption of digital assets.
Released on Tuesday, the SEC staff published directives on liquid development, the drafting of certain conditions, activities for implementing liquid and the reception tokens that they generate do not constitute values of securities.
“Institutions can now integrate LST with confidence into their products, which is certain to generate new sources of income, expand customer bases and allow the creation of secondary markets for marked assets,” said Mara Schmmedt, CEO of the Blockchain developer company, Alluvial, Cointelegraph.
This decision opens the way to a wave of new products and services that will accelerate traditional participation in digital asset markets. »»
Crypto companies have requested regulatory advice from the SEC on liquid tokens. On Thursday, a group of stakeholders from Solana wrote a letter to the dry which pushed their inclusion in negotiated funds on the stock market.
Liquid clears is the process of filing cryptographic assets in a third -party supplier and tokens of receipt in return. These reception tokens can be exchanged or used in DEFI without delay the decontrly.
“Today’s guidelines on liquid stimulation show the same nuanced understanding of LST technology as the crypto working group presented when we encountered them on this subject in February,” said Cointelegraph, CEO of Jito Labs, Lucas Bruder.
Despite the apparent support of the cryptography industry, the liquid staging advice of the SEC aroused criticism within the agency. Commissioner Caroline Crenshaw has issued a strong dissent, warning that the declaration is based on trembling assumptions and offers little regulatory certainty.
In relation: What is liquid stretch and how does it work?
Liquid clearing activities under the Howey test
Katherine Dowling, general lawyer and responsible for Bitwise conformity said that “the SEC clearly indicates that certain liquid implementation activities do not imply titles and would therefore not be required to register.”
That an activity is eligible for a key element of the Howy test, the legal standard used to determine whether an asset or a transaction is a securities offer.
For liquid ignition providers, performing only “administrative or ministerial” functions, such as the issuance of tokens which represent the property of marked assets, cannot trigger the registration requirements of securities, according to the agency.
This includes those who emitted “tokens of reception of stake”, this is how the dry refers to the cryptographic assets that the depositors receive for the implementation of their cryptographic assets.
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“In the evaluation of the economic realities of a transaction, the test is whether there is an investment of money in a common company based on a reasonable expectation that the benefits derive from entrepreneurial or managerial efforts of others,” writes the dry.
This wave of institutional adoption can help retail merchants and have an impact on the DEFI services offer. “Retail platforms will be able to attract more users by providing transparent access to the implementation of awards without locking constraints, while the wider ecosystem benefits from the increase in liquidity and innovation,” said Schmiedt.
Review: The U-turn of the dry on the crypto leaves key questions unanswered
