SEC's attitude towards two Ethereum-based staking protocols caused serious turbulence in the market. In a statement made last summer, it was indicated that Lido and Rocket Pool provide securities services, and the prices of these two projects dropped sharply.

According to the statement, investors were acting with profit expectations when investing Ethereum in these platforms, and this was considered within the scope of an investment contract. SEC's harsh decision led to deep declines in a very short period. While LDO lost 23% of its value, RPL also experienced an 8% decline. Subsequently, hundreds of thousands of dollars in liquidations occurred.

In fact, SEC's statement that Ethereum itself is a security had already caused controversy earlier. But Ethereum's exact status is still not clarified. This uncertainty and the harsh SEC move raised questions about the future of staking protocols.