Everstake met the SEC to explain why non-custodial staking should not be seen as a securities offering.
The SEC has not made a final decision on staking rules but continues to speak with blockchain firms.
Crypto groups want clear rules on staking to help the industry grow without legal confusion.
The U.S. Securities and Exchange Commission (SEC) has held talks with Everstake, a major blockchain staking provider. The meeting aimed to discuss clearer rules for staking in blockchain networks. The SEC’s Crypto Task Force also joined the discussions.
https://twitter.com/Crypto_Star3/status/1923648552271770035
Over $193 billion in digital assets are currently staked in proof-of-stake (PoS) networks. Yet, the U.S. lacks clear legal definitions for staking activities. This regulatory gap has raised concerns across the crypto sector.
Staking's Legal Status Remains Undefined
Staking continues to operate in a legal gray zone in the U.S. Although users actively participate, current laws remain vague. Regulators are still debating how staking fits under existing securities law.
In the past, the SEC launched enforcement actions against platforms such as Kraken, Coinbase, and Consensys. These actions targeted their staking services. However, under President Donald Trump’s administration, these actions have recently been dropped.
Everstake Advocates for Regulatory Clarity
During the meeting, Everstake emphasized that non-custodial staking differs from investment products. The firm argued that users retain full control of their assets. They only delegate validation rights, not ownership.
Everstake submitted a formal letter to the SEC on April 8, 2025. The letter responded to Commissioner Hester Peirce’s call for industry feedback. It requested regulatory clarity for non-custodial, custodial, and liquid staking models.
The company claimed that non-custodial staking should not be treated as a securities offering. It said the process does not involve pooled assets or reliance on a company’s management for profits. Instead, rewards are generated by the blockchain’s internal mechanisms.
Howey Test Analysis Cited in SEC Submission
Everstake’s letter outlined why non-custodial staking does not meet the Howey test. The Howey test determines if a transaction qualifies as a securities offering. The letter explained that users do not invest in a common enterprise or expect profits from Everstake’s efforts.
Rewards are based on network-level performance, not on any third-party’s control. Everstake also said their role is limited to technical support. The firm compared non-custodial staking to mining in proof-of-work systems. Mining is not classified as a securities transaction by the SEC.
Industry Pushes for Clear Guidance
On April 30, a group of nearly 30 crypto advocacy organizations urged the SEC to provide clarity. Led by the Crypto Council for Innovation (CCI), they submitted a joint letter. The letter asked for clearer rules for all staking models.
The SEC has not offered firm guidance yet. However, it continues to gather feedback from industry participants. The Crypto Task Force remains engaged with stakeholders to address staking and related blockchain infrastructure issues.