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- Ethereum staking surged with over 36 million ETH locked, as investors favored rewards despite risks.
- SEC division says liquid staking may not be securities, but internal disagreements cast doubt on clarity.
Ethereum’s transaction levels have jumped to their highest point in a year, hitting a sharp rise following new remarks from the US Securities and Exchange Commission.
Data from Dune Analytics shows more than 36 million Ethereum are now staked on the network, equal to nearly 30 percent of the total ETH supply.
This jump in staked tokens comes as investors are locking up assets through smart contracts, choosing staking rewards over liquidity. Over $1.8 billion worth of ETH was staked in just the first half of June, signaling heightened confidence among long-term holders.
In the previous article, CNF reported that the SEC’s Division of Corporation Finance released a statement on liquid staking, saying it “does not involve the offer and sale of securities” if no investment contracts are involved. This means some staking tokens, under specific terms, may not require registration with the commission.
SEC’s Staking Ruling Faces Internal Criticism
Despite the announcement, not all SEC members agree with this view. Commissioner Caroline Crenshaw spoke against it, calling the division’s opinion “a wobbly wall of facts without an anchor in industry reality.” According to her, the conclusions are based upon “numerous factual assumptions,” and one deviation will put an entity beyond the scope of the statement.
Crenshaw also made clear that the statement contains the opinions of just one SEC division and should provide “little comfort” to participants in staking activities. She expressed fears that the industry could be lulled into a false sense of security.
Commissioner Hester Peirce, however, endorsed the update, stating that the division explained clearly that “liquid staking activities in connection with protocol staking do not involve the offer and sale of securities.” SEC Chair Paul Atkins also called it “a significant step forward in clarifying the staff’s view.”
Ethereum Staking Spike Reflects Growing Long-Term Interest
More than 500,000 ETH were staked over a few weeks in June, reflecting that many participants are optimistic about positive long-term outlooks. The higher staking also reduced Ethereum’s liquid supply, which may have affected stability in prices and demand.
A CryptoQuant contributor, Onchainschool, explained that “this growth signals rising confidence and a continued drop in liquid supply.” That number now includes almost 23 million ETH held in the hands of addresses with no sale history, amounting to around $82.6 billion.
Furthermore, the DeFi industry has received the SEC’s statement warmly. Mara Schmiedt, CEO of Alluvial, said institutions are given the green light to leverage liquid staking tokens, which “is sure to drive new revenue streams, expand customer bases and enable the creation of secondary markets for staked assets.”
