US SEC and Everstake Meet to Explore Clearer Regulatory Definitions for Blockchain Network Staking

The U.S. Securities and Exchange Commission (SEC) cryptocurrency special task force recently disclosed that it met with non-custodial staking service provider Everstake, which argues that non-custodial staking should be considered a technical protocol mechanism rather than a securities transaction. Everstake founder Sergii Vasylchuk stated that users retain control over their digital assets during the staking process and do not transfer asset ownership to a third party, making staking more akin to a fundamental technical function of blockchain networks rather than an investment product. According to the legal opinion submitted by Everstake, non-custodial staking does not meet the four criteria of the Howey Test for an "investment contract": users do not invest funds in a common enterprise, there is no expectation of profit from the efforts of others, they do not rely on the managerial actions of the service provider, and staking rewards are automatically distributed by the blockchain protocol. Therefore, it is recommended to establish clear guidelines to confirm that non-custodial staking does not constitute a securities issuance, to promote blockchain innovation and reduce regulatory uncertainty. As of now, the U.S. SEC has not taken a clear stance on this matter but has stated that it will continue to listen to industry opinions.