The crypto market opened the day sluggishly.

The cryptocurrency market opened the day with small losses. Bitcoin traded limited at $114,000, while the total cryptocurrency market value was $3.80 trillion.

Notable developments in cryptocurrencies of the last 24 hours

Continuing uncertainty about economic growth in the US has limited the risk appetite of crypto investors. As investors avoided risk-based assets, the crypto market also started the day with a slight decline. The total cryptocurrency market value fell 0.5 percent in the last 24 hours to $3.80 trillion. At the time of writing, leading cryptocurrency Bitcoin (BTC) was trading at $114,257, down 0.4 percent, while Ethereum (ETH) was trading at $3,652, down 1.4 percent. XRP fell 3.6 percent to $2.96, and Solana fell 3 percent to $164.40.

Meanwhile, Bitcoin ETFs recorded $196 million in outflows on August 5th, marking the fourth day of outflows. Ethereum ETFs recorded a net inflow of $73.22 million.

SEC liquid staking controversy: Crenshaw harshly criticizes internal statement

The statement regarding liquid staking activities, released on Tuesday by the U.S. Securities and Exchange Commission's (SEC) Division of Corporate Finance, has drawn strong criticism from within the agency. SEC Commissioner Caroline Crenshaw argued that the statement created further confusion.

Crenshaw began his statement by saying, “Some things are better left unsaid.” He stated that the staff memorandum was “based on unsubstantiated assumptions” and created a “shaky wall of facts disconnected from industry reality.” He also cautioned providers offering liquid staking services to exercise caution. The staff memorandum noted that some liquid staking activities may not be considered securities offerings depending on how they are structured. SEC Chairman Paul Atkins called this step “an important step” toward clarifying the circumstances under which cryptocurrency activities fall outside the SEC’s jurisdiction. Fellow SEC Commissioner Hester Peirce supported the statement, noting that liquid staking is a familiar practice similar to the issuance of receipts for goods deposited with a custodian. “Today’s statement clarifies the view that liquid staking activities related to protocol staking do not constitute securities offerings,” Peirce said.

Liquid staking has quickly become a key area in the cryptocurrency market. According to data, approximately $67 billion in assets are currently locked across various protocols, with approximately $51 billion of that held by Ethereum.