Everstake defends non-custodial staking as SEC weighs industry input
The US Securities and Exchange Commission (SEC) has engaged with Everstake to clarify regulatory definitions surrounding staking in blockchain networks. Over $193 billion in digital assets are currently staked in major proof-of-stake networks, yet staking remains legally ambiguous in the US. Everstake argues that non-custodial staking should not be classified as a securities transaction, as users retain control of their assets and do not transfer ownership. The company asserts that staking is a technical process rather than an investment product. In a letter to the SEC, Everstake outlined why non-custodial staking fails the Howey test, emphasizing user control, lack of pooled funds, and the absence of reliance on company management for profits. Everstake proposed criteria to exempt non-custodial staking from securities classification, likening it to proof-of-work mining. The SEC has not provided definitive guidance but is engaging with industry stakeholders for input on the matter. Additionally, nearly 30 crypto advocacy groups have requested clear regulatory guidance on staking services.
