The SEC has met with Everstake, a leading non-custodial staking provider, to clarify regulatory definitions for staking as over $193 billion in digital assets are staked. Staking remains legally ambiguous in the U.S. after prior actions against companies like Kraken and Coinbase. Everstake argues that non-custodial staking isn't a securities transaction, as users retain full control over their digital assets without transferring ownership. They describe staking as a technical function essential for maintaining decentralized networks. In an April 8 letter to the SEC, Everstake requested clarity, asserting that because users retain control of their tokens and earn rewards through network incentives rather than managerial efforts, non-custodial staking should not classify as a securities offering. They propose criteria for exemption including user asset control and absence of pooled funds. The SEC, while listening to industry voices, has not defined its stance on staking. The Task Force continues to gather feedback from various stakeholders to address regulatory concerns.

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