The Proof of Stake Alliance has participated in dialogues with U.S. authorities on industry-driven requirements for PoS protocols.
The Proof of Stake Alliance reported that important measures are being taken to strengthen the regulatory environment surrounding the Staking-as-a-Service (STaaS) industry, including dialogues with the U.S. Securities and Exchange Commission (SEC).
Proof of Stake Alliance sat down with SEC to talk about the budding adoption of Proof-of-Stake (PoS) protocols. A successor to Bitcoin’s (BTC) Proof-of-Work Consensus Protocol appears as better and more scalable.
Staking provides token holders the chance to gain interest in locked quantities of the network’s native token. This promotes the overall output of the network.
The POSA submitted a white paper containing a legal analysis by the multinational law firm Paul Hastings LLP. They confirmed that the law review discussion was continuing.
Progress announced at the SEC meeting
Talks with the SEC took place in February to inform the commission on PoS tech and discuss a regulatory framework for STaaS offerings.
POSA previewed a set of industry-driven standards to highlight potential regulatory concerns, including asking STaaS providers to refrain from investment advice. Going around the terms used in the financial sector (“interest,” “dividend,” “yield,” etc.). Focusing on security and network participation and going around guarantees on amounts of reward.
Evan Weiss, president and founder of the Proof of Stake Alliance, stated that SEC’s stance “extremely impressed” him. Bryce Ferguson, Product Manager at Coinbase Custody, stating, the market must have an open dialog with regulators and service providers to conform to certain requirements. By working together, industry players will help ensure that the Proof of Stake networks continues to thrive.
At the beginning of the year, Coinbase Custody and Bison Trails had entered the POSA, supporting, among other measures, the introduction of specific rules on the proceeds of stakes.