SEC Nod to Liquid Staking Fuels ETH Breakout Above $4K, Ignites Altcoin and L2 Rally

SEC’s Liquid Staking Clarity Fuels ETH Breakout and Layer-2 Surge

Regulatory clarity from the U.S. Securities and Exchange Commission (SEC) surrounding liquid staking has sparked a powerful rally across Ethereum’s staking and scaling ecosystem.

Ethereum (ETH) crossed the $4,000 mark for the first time since December, buoyed by renewed investor confidence following the SEC’s announcement. The clarification removed a long-standing gray area, opening the door for broader participation—especially from institutions previously hesitant to engage in yield-bearing DeFi activity.

The rally extended well beyond ETH. Layer-2 networks saw sharp gains, with Optimism’s OP token rising 8% in the past 24 hours, bringing its weekly gains to 13%. Rival network Blast climbed 6.3%, while Mantle (MNT) surged 50% over the week—leading the pack among optimistic rollup platforms.

Staking-focused tokens also posted outsized gains. Lido DAO’s LDO advanced 12.3% in a single day, and EtherFi’s ETHFI rose 5.4%, reflecting broader enthusiasm across the sector.

The announcement follows a short-lived altcoin rotation last month, but this week’s moves suggest deeper structural support. Market participants are increasingly viewing the SEC’s guidance as a green light for both DeFi and staking-focused protocols to expand.

Rebecca Rettig, legal advisor to liquid staking platform Jito, noted the update could pave the way for liquid staking tokens to eventually be included in ETF offerings, bridging further connections between traditional finance and decentralized staking infrastructure.