The decision of the US Securities and Exchange Commission (SEC) on 2 altcoins brought a sharp decline in prices.

The SEC noted on June 28 that Ethereum-based staking protocols Lido DAO (LDO) and Rocket Pool provide securities services.

The regulator's statement caused up to a 23% decline in prices. The details shared by the SE emphasized that the Ethereum investments made on these two platforms were profit-oriented and that the investment contracts fell within the scope of securities.

Each Lido and Rocket Pool staking program is offered and sold as investment contracts and therefore securities. Investors make an Ethereum investment in a common enterprise with a reasonable expectation of profits derived from the managerial efforts of others.

SEC stated in the past that Ethereum is also a security but this decision was met with backlash by the community. SEC still has not been able to clarify the status of Ethereum.

Prices have sharply dropped

SEC's announcement brought sharp declines in LDO and RPL prices. Shortly after the announcement, the two projects experienced a deep drop, bringing along hundreds of thousands of dollars in liquidation.

According to the data transferred by CoinGecko, LDO lost 23% of its value, dropping from $2.4 to $1.8, while RPL experienced an 8% decline, falling from $20 to $18.5.