The SEC’s latest comment on liquid evaporation has sparked optimism and attention, highlighting the regulatory grey area of one of the fastest growing sectors of cryptocurrencies.
While some in the industry see unbinding guidance As a step forward Regarding institutional and retail adoption, others warn that it will have key legal issues that are not yet resolved and may face challenges.
“First of all, these guidelines are not laws…it may compete at some point,” Marinade agency possession director Scott Gralnick told Cointelegraph.
“The industry needs to continue working together to build positive regulatory outcomes. This includes legislation that advocates that market structures will vote soon.”
https://www.youtube.com/watch?v=TQGSMSUTQ8G
The key to the SEC statement is the disclaimer, which represents the viewpoint of a department within the agency, rather than the overall position of the agency. The disclaimer states that the statement is not a “not a rule, regulation, guidance or representation” of the SEC.
Sources familiar with the process told Cointelegraph that employee guidance was not abnormal and there was a lack of a formal vote from the committee. However, this does not mean that the Commissioner is not aware of the guidance.
Related: What is liquid accumulation and how does it work?
More complex products
Liquid evaporation allows users to earn points rewards while keeping the token liquid and available, which is more complex than traditional stacking. Even in liquid feeding schemes, technical and operational models can vary widely. The latest guidance from SEC staff may not fully address these differences.
“The guidance confirms that liquid discharge activities are not considered as securities offerings,” said Sam Kim, chief legal officer at Lido Labs. “That is, there are still some public regulatory issues regarding related areas such as reproduction, cross-chain composition and more complex financial products built on equity. These areas still require further regulatory clarification.”
https://www.youtube.com/watch?v=gu3jr-ddtke
According to Michael Hubbard, Chief Strategy Officer of Sol Stratigies, its operations are purely administrative or ministerial agreements – one-on-one issuing receipt tokens that allow users to hold a basis without controlling the timing or amount and avoiding guaranteed returns, “the clarity of regularity may be found under this framework.”
“However, the guide is highly specific in its parameters and emphasizes that any deviation from the structure may lead to different regulatory treatments,” Hubbard told Cointelegraph.
Related: Liquid recovery token and liquid containing token
Tax issues
One of the key issues with the public statement of the SEC department is the taxation of rewards obtained through the amount of liquid. These rewards affect ecosystem participants, including stakers reported to tax agencies, including sizes of size.
“Some issues remain about the timing of taxes that create rewards, whether they are received or disposed of,” said Evan Weiss, COO of Alluvian.
“This issue is currently under legal review in valid cases, with ongoing advocacy at the Congress level seeking fair tax treatment to support the continued development of the industry.
Another key issue is the Giver Trust Tax Rule, which governs how taxation is imposed upon transfer after death. According to Weiss, these rules are “the main regulatory barriers to the integration of Striping Stataking in exchange-traded funds” and remain “unresolved issues.”
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