The US Securities and Exchange Commission (SEC) has discussed with Aversion, one of the largest non-Castodial staking providers globally to detect clear regulatory definitions around stacking in the blockchain network.
The meeting, which also included SEC’s Crypto Task Force, comes at a time when more than $ 193 billion is prominent in digital assets. Proof-off steak (POS) network.
However, on a large scale of participation, stacking in a legal gray sector in the US remains, as regulators wrestle with its classification under the current securities law.
The previous SEC administration also took enforcement action against prominent players like Crackon, Coinbase and Consciousness due to its staking services. The agency has recently rejected these enforcement works under Pro-Crypto President Donald Trump.
During the meeting, Erestec told SEC that non-Castodial stacking should not be classified as securities transactions. The company said that users maintain complete control over their digital assets during the entire staking process and do not transfer ownership to a third party.
He argued that it prevents a technical work, not investment products.
“Our main claim is that stacking is not a financial instrument or safety transaction, but a technical process, a base-layer protocol mechanism-one database for an oralle in a dubious network, which maintains the integrity and functionality of the decentralized network,” said the Ereastek founder Sergi Wasilchuk.
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Never calls for regulator clarity
In a letter presented to SEC’s Crypto Task Force on 8 April 2025, Avestek asked the agency to expand the regulatory clarity for non-Custodial stake and custodial and liquid stacking models.
In the letter, who came in response Commissioner hater peerus Call for the input on the regulatory treatment of blockchain services, Avestek argued that non-custodial stacking should not be considered offering securities.
It claimed that non-custodial stacking, where users maintain control over their tokens, do not include profits rather than profitable with property pooling or managerial efforts.
In its model, Erestec stated that users only hand over verification rights while maintaining ownership of their digital assets. Steaking rewards are distributed by algorithms blockchain networks, and the firm only provides technical infrastructure.
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Non-Castodial Stacking Haue Test fails
The letter also explained why non-custodial stacking fails for each. Howy TestUsers do not invest money in a general venture, do not expect profits from the efforts of Everestake, and do not depend on the management of the company for financial returns.
Instead, any award comes from network-level encouragement and fluctuates with the market value of the underlying property.
Avestec proposes specific criteria that should exempt non-Castodial stacking from securities classification. These include user asset controls, absence of pool funds, non -permissionless unstacking and purely technical services.
It prefers non-custodial stacking from proof-of-work mining, which SEC has earlier rejected as a securities transaction.
Margaret Rosenfeld, Chief Legal Officer of Avestek, also told Coinlagraph that “with non-Custodial stacking, there is no handover of property, no investment contract, and no third-party risk.” He said:
“Treating it as a securities offer reduces decentralized models and cools innovation in the blockchain region.”
Nevertheless, SEC has stopped a certain stance so far. Rosenfeld said that the agency made no “specific commitment” on guidance. However, it continues to listen to the stakeholders of the industry.
“The task force is actively engaged with a series of stakeholders-in which non-Custodial stake, ETF, and comprehensive blockchain infrastructure involved with people involved-to collect input.”
In a letter of April 30 to SEC, about 30 Crypto Advocate Group led by Lobby Group The Crypto Council for Innovation (CCI) Asked agency for clear regulator guidance On Crypto staking and staking services.
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