The US Securities and Exchange Commission (SEC) recently convened with Everstake, a leading non-custodial staking provider, to discuss the regulatory landscape surrounding staking in blockchain networks. As over $193 billion in digital assets are currently staked across major proof-of-stake (PoS) networks, the classification of staking under existing securities law remains murky and contentious.
In a crucial meeting involving the SEC’s Crypto Task Force, Everstake argued that non-custodial staking should be viewed as a technical process rather than a securities transaction. The company emphasized that users retain full control of their digital assets during the staking process, meaning they do not transfer ownership to any third party. This distinction is vital in maintaining the integrity of the decentralized nature of blockchain technology.
“Our main assertion is that staking is not a financial instrument or security transaction, but rather a technical process, akin to an oracle in a database that maintains the integrity and functionality of decentralized networks,” stated Everstake founder Sergii Vasylchuk.
Everstake’s push for regulatory clarity was further articulated in a letter submitted to the SEC on April 8, 2025, where they requested clear guidelines not only for non-custodial staking but also for custodial and liquid staking models. The letter addressed Commissioner Hester Peirce’s call for input regarding the treatment of blockchain services and posited that non-custodial staking lacks the elements typically associated with securities offerings, such as pooled assets and profit expectations from managerial efforts.
According to Everstake, users engage in non-custodial staking by delegating validation rights while maintaining ownership of their tokens, ensuring staking rewards arise from network-level incentives that are independent of the company’s management. The proposed criteria for exempting non-custodial staking from securities classification include user control of assets, the absence of pooled funds, permissionless unstaking, and the provision of purely technical services.
Furthermore, Everstake’s legal team has highlighted that non-custodial staking fails the Howey test, which determines if a transaction qualifies as an investment contract. This test criterion necessitates that the transaction involves an investment of money in a common enterprise with an expectation of profits derived from the efforts of others. Everstake argues that their model does not fulfill these criteria, further distancing non-custodial staking from being classified as a security.
Margaret Rosenfeld, Everstake’s chief legal officer, remarked, “With non-custodial staking, there’s no transfer of assets, no investment contract, and no third-party risk.” She cautioned that classifying non-custodial staking as a securities offering would undermine the decentralized paradigm of blockchain technology, potentially stifling innovation in the sector.
Despite these discussions, the SEC has yet to offer definitive guidance on the regulatory status of staking. The agency continues to engage with a broad spectrum of industry stakeholders to gather insights and perspectives on the evolving landscape of crypto-related services.
In a related development, nearly 30 crypto advocacy groups, led by the Crypto Council for Innovation (CCI), have publicly urged the SEC to provide clearer regulations regarding crypto staking and its associated services. The collective voice from the industry signifies a growing demand for regulatory clarity amidst the complexities of blockchain and crypto-economics.
