Everstake argues non-custodial staking should not be classified as security transactions.

From Cointelegraph

May 17, 2025 5:12 AM:

The US SEC met with Everstake to discuss regulatory clarity around staking in blockchain networks. Over $193 billion is staked in PoS networks, but the legal status of staking in the US remains uncertain. Everstake argues that non-custodial staking should not be classified as a security transaction, emphasizing user control.

Everstake submitted a letter to the SEC requesting regulatory clarity for non-custodial staking models. They argue that non-custodial staking, where users retain control of their tokens, should not be considered a securities offering. Users delegate validation rights while maintaining ownership, with rewards distributed by the blockchain network.

Non-custodial staking fails the Howey test according to Everstake, as users do not invest money in a common enterprise or expect profits from the company’s efforts. Everstake proposes specific criteria to exempt non-custodial staking from securities classification, highlighting the decentralized nature of staking and the risks of stifling innovation. The SEC has not yet provided a definitive stance on staking guidance.

Read more at Cointelegraph: Everstake defends non-custodial staking as SEC weighs industry input