## Caroline Crenshaw sharply questions the SEC's liquid staking analysis

Commissioner Caroline Crenshaw has expressed her strong disagreement with the stance recently taken by the SEC's Division of Corporation Finance regarding liquid staking. In a statement issued on August 5, Crenshaw sharply criticized the legal assessment presented by the division, arguing that the document is built on weak factual grounds and lacks a real connection to how the sector operates.

## Crenshaw's criticisms: an analysis without solid foundations

According to the commissioner’s statement, the division’s declaration on liquid staking suffers from a fundamental problem: it accumulates theoretical assumptions without empirical support, resulting in fragile conclusions. Crenshaw emphasized that "some things are better left unsaid," implicitly referring to the lack of rigor in the arguments presented.

In her detailed analysis, Caroline Crenshaw pointed out that the Division of Corporation Finance’s document lacks a real anchor in industry dynamics. The commissioner stressed that, although the statement acknowledges it represents only the division staff’s opinion and not an official position of the full Commission, this creates a problematic situation for sector operators who require regulatory certainty.

## Paul Atkins supports the division’s interpretation

In stark contrast to Crenshaw’s stance, the newly appointed SEC Chair Paul Atkins published his own statement on the same day in support of the Division of Corporation Finance’s position. Atkins presented the initiative as a significant achievement of the SEC Crypto Project, claiming it represents progress in clarifying how federal securities laws apply to emerging technologies.

The chair highlighted that this guidance from staff helps reduce regulatory ambiguity around certain digital asset activities that may not fall under SEC jurisdiction. Atkins expressed his satisfaction with the initial results of the Crypto Project.

## A significant divergence in regulatory outlook

The situation reflects a notable division within the SEC regarding how to approach liquid staking. While the Division of Corporation Finance aimed to provide greater clarity by asserting that certain forms of liquid staking do not constitute securities, Caroline Crenshaw questions the methodological validity of such conclusions. This divergence of opinions underscores the regulatory complexity still surrounding crypto assets.