Everstake Urges SEC to Clarify Crypto Staking Rules as $193B Industry Waits
Everstake Pushes Back on SEC’s Staking Scrutiny
Everstake, one of the world’s largest non-custodial staking providers, is taking a firm stand in the ongoing U.S. regulatory debate around crypto staking. In an official meeting with the U.S. Securities and Exchange Commission’s Crypto Task Force, Everstake made the case that non-custodial staking is not a securities transaction, but rather a technical function crucial to blockchain networks.
This meeting comes at a critical time, with over $193 billion worth of assets currently staked across major proof-of-stake (PoS) networks. Despite the size of the market, staking still occupies a legal gray area in the United States.
Non-Custodial Staking: Not an Investment, Says Everstake
During the closed-door session, Everstake argued that in non-custodial staking, users retain full control of their digital assets. No assets are transferred, pooled, or handed over to third parties. Instead, users delegate validation rights without surrendering ownership.
“Staking is not a financial instrument or security transaction, but a technical process that maintains the functionality of decentralized networks,” said Sergii Vasylchuk, Everstake’s founder.
Everstake emphasized that their role is limited to providing infrastructure for blockchain validation—not managing investments or generating profits on behalf of users.
Regulatory Clarity: A Sector-Wide Demand
In a formal letter to the SEC on April 8, 2025, Everstake pressed for clear regulatory distinctions among different staking models: non-custodial, custodial, and liquid staking.
This submission responded to Commissioner Hester Peirce’s open call for industry input on how blockchain services should be classified under securities laws. Everstake maintained that non-custodial staking lacks the characteristics of a securities offering:
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No investment in a common enterprise
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No expectation of profit from the provider’s managerial efforts
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No asset pooling or third-party custody
Instead, staking rewards are algorithmically distributed by the blockchain, with Everstake merely acting as a validator node operator.
Why Non-Custodial Staking Fails the Howey Test
Everstake’s letter included a detailed legal argument that non-custodial staking fails all four prongs of the Howey Test, the standard used by the SEC to determine whether a transaction qualifies as an investment contract:
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No monetary investment in a centralized entity
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No common enterprise or asset pooling
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No reliance on promoter’s efforts
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Returns depend on blockchain incentives, not on managerial work
The company also proposed that staking with the following attributes should be exempt from securities classification:
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User retains full control of assets
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No pooling or custodial holding of funds
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Unstaking is permissionless and direct
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Provider offers purely technical services
These characteristics, Everstake argues, make staking similar to proof-of-work mining, which the SEC has previously stated does not constitute a securities transaction.
Legal Risks and Innovation at Stake
Everstake’s Chief Legal Officer, Margaret Rosenfeld, reinforced the position by stating that no handover of assets, no third-party risk, and no investment contract are involved in non-custodial staking.
“Treating this as a securities offering would chill innovation and undermine the decentralized nature of blockchain networks,” she said.
Despite these arguments, the SEC has made no official commitments regarding staking classifications. The Crypto Task Force is reportedly continuing its dialogue with stakeholders, including ETF providers and infrastructure companies.
Adding weight to the industry’s call for clarity, nearly 30 crypto advocacy organizations, including the Crypto Council for Innovation (CCI), also wrote to the SEC on April 30, asking for comprehensive regulatory guidance for crypto staking.
What’s Next?
As crypto staking continues to scale—and with over $193 billion already involved—the stakes for clear regulation have never been higher. For now, the future of staking in the U.S. rests on whether the SEC can move beyond enforcement and provide the rules the industry needs to thrive.
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