The post Everstake Advocates for Regulatory Clarity on Non-Custodial Staking in Discussions with SEC appeared on BitcoinEthereumNews.com.

Everstake’s recent dialogue with the SEC’s Crypto Task Force highlights the complexities surrounding non-custodial staking and its regulatory implications. This meeting underscores the urgency for clearer regulatory frameworks as over $193 billion is at stake across various proof-of-stake networks. During this meeting, Everstake reinforced the position that non-custodial staking is a technical mechanism rather than a security transaction, as stated by founder Sergii Vasylchuk. “Staking maintains the integrity of decentralized networks,” he emphasized. Everstake advocates for clearer SEC guidelines on non-custodial staking, arguing it shouldn’t be classified as a security transaction amidst a $193 billion staking surge. Everstake Calls for Regulatory Clarity in Staking In a significant move for the crypto industry, Everstake submitted a detailed letter to the SEC’s Crypto Task Force on April 8, 2025, seeking regulatory clarity for non-custodial staking models. The firm responded to Commissioner Hester Peirce’s initiative for public input on the regulation of blockchain technologies, asserting that non-custodial staking should not be classified alongside traditional securities. Everstake articulated its position by stressing that non-custodial staking allows users to retain control of their digital assets. Unlike traditional investment offerings, this model does not involve the pooling of assets or the expectation of profits derived from managerial efforts. The staking rewards, as Everstake pointed out, arise directly from the blockchain network’s algorithmic functions rather than from the company’s actions. Detailed Arguments on Non-Custodial Staking’s Legal Status As part of their argument, Everstake posited that non-custodial staking does not meet the criteria set forth by the Howey Test, which determines if certain transactions qualify as investment contracts. Users participating in non-custodial staking do not invest money into a common enterprise—they merely delegate validation rights while maintaining ownership of their assets. Hence, they are not exposed to the managerial efforts of Everstake or expecting profits from the entity.…

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Filed under: News - @ May 17, 2025 9:20 am