Everstake Communicates Position to US SEC: "Non-Custodial Staking is Not a Security"
Summary
- Everstake communicated to the US SEC in a meeting that non-custodial staking does not constitute a securities transaction.
- Everstake argued that its staking model does not meet the Howey Test criteria and is not a financial product.
- The SEC has not yet established clear regulatory standards for staking.
Global non-custodial staking provider Everstake has directly met with the United States Securities and Exchange Commission (SEC) to convey that its staking model does not constitute a securities transaction.
According to a report by cryptocurrency-focused media outlet Cointelegraph on the 17th, Everstake recently met with the SEC's Crypto Task Force, asserting that "non-custodial staking is a technical function, not a financial product," and that "users of our staking service retain ownership of their tokens while only delegating validation rights."
This meeting appears to have followed a position paper submitted to the SEC on the 8th of last month. In the previous letter, Everstake emphasized that "the non-custodial staking model involves no asset investment or third-party risk and does not meet the criteria for securities classification (Howey Test)," warning that classifying it as a security could stifle innovation across the blockchain industry.
The media outlet reported that "Everstake urged the SEC to establish clear regulatory standards for staking," while noting that "the SEC has yet to issue a concrete stance on the matter."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
