SEC declines to classify cbETH and stETH, flags ETH redemption process as key issue
- —The SEC FAQ, dated September 25, is staff guidance and not a binding rule
- —cbETH requires unwrapping plus a separate unstaking step, with funds potentially locked
- —stETH redemptions go through Lido's withdrawal queue, risking delays and discounts
- —Selling a token on the market is not the same as redeeming the underlying ETH
Why it matters: The guidance reduces uncertainty around staking tokens but shifts holder risk toward liquidity and redemption mechanics.
Source: TokenPost