SEC staff FAQ: liquid staking tokens don't guarantee a fast ETH exit
- —SEC staff FAQ of Sept. 25 conditionally separated staking receipts from protocol-based liquid staking tokens
- —cbETH and stETH are not named in the FAQ, and the guidance is non-binding
- —Unwrapping cbETH requires an account in good standing and a separate unstaking request
- —stETH redemptions go through Lido's withdrawal queue, while sales depend on liquidity and the ETH discount
Why it matters: LST holders should check product terms rather than rely on a regulatory label: exiting may take time and come at a discount.
Source: Coincierge
More on this
Regulation · Sep 26SEC's Peirce Pushes Zero-Knowledge Privacy as Staff Clarifies Token Buybacks and Staking Receipts
Regulation · Sep 26SEC staff says certain crypto buybacks and staking tokens fall outside securities laws
DeFi · Sep 18Maple Finance: tokenization does not guarantee asset liquidity