The US Securities and Exchange Commission (SEC) has recently engaged in discussions with Everstake, a prominent non-custodial staking provider on a global scale. The aim of the meeting was to delve into clearer regulatory definitions surrounding staking in blockchain networks. This meeting, which also involved the SEC’s Crypto Task Force, is crucial at a time when the total value of digital assets staked across major proof-of-stake (PoS) networks has surpassed $193 billion.

Despite the substantial involvement in staking, the regulatory status of this practice in the US remains uncertain as regulators grapple with how to classify it under existing securities law. Notably, the previous SEC administration took enforcement actions against key industry players like Kraken, Coinbase, and Consensys over their staking services. However, under the current pro-crypto administration of President Donald Trump, these enforcement actions have been dismissed.

During the meeting with the SEC, Everstake argued that non-custodial staking should not be considered a securities transaction. They emphasized that users retain complete control over their digital assets throughout the staking process, without transferring ownership to a third party. Everstake's founder, Sergii Vasylchuk, highlighted that staking is a technical process that ensures the integrity and functionality of decentralized networks, likening it to an essential protocol mechanism.

In a letter submitted to the SEC’s Crypto Task Force on April 8, 2025, Everstake urged for regulatory clarity, particularly distinguishing between non-custodial staking and custodial and liquid staking models. The company emphasized that non-custodial staking does not involve pooling assets or expecting profits from managerial efforts, as users delegate validation rights while maintaining ownership of their assets. Staking rewards are algorithmically distributed by the blockchain network, with Everstake solely providing technical infrastructure.

Everstake contended that non-custodial staking does not meet the criteria of the Howey test, as users do not invest money in a common enterprise, expect profits from the company’s efforts, or rely on the company’s management for financial returns. The company proposed specific criteria that should exempt non-custodial staking from securities classification, highlighting factors such as user asset control, absence of pooled funds, permissionless unstaking, and the provision of technical services.

Despite the arguments presented by Everstake, the SEC has not yet provided a definitive stance on staking guidance. However, the agency is actively engaging with various

Source: https://cointelegraph.com/news/everstake-defends-non-everstake-sec-non-custodial-staking-guidance-staking-as-sec-weighs-industry-input?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound