Coinbase Custody joins POSA organization to push regulations of staking services
By Inkarias - 2020-02-07
Coinbase Custody and Bison Trails have joined the Proof of Stake Alliance (POSA), a lobbying organization aiming to push regulators to clarify the legal treatment of staking services within the cryptosphere. After an official announcement made yesterday the lobbying group said having the two companies on board adds weight to its mission of advancing the proof-of-stake (POS) industry. Other members of the group include Tezos, the Interchain Foundation and the Web3 Foundation. Coinbase, based in San Francisco, is one of the most known and largest crypto exchanges in the U.S, while Bison Trails provides blockchain infrastructure tools. Both companies are members of the Libra Association, the Facebook-led global stablecoin project that created a huge controversy during 2019. Sam Mcingvale, CEO of Coinbase Custody has shared his view regarding the whole POS ecosystem:
Proof of Stake is an increasingly important innovation that the crypto space as a whole is rapidly trending toward
The objectives
According to a recent press release, the alliance believes there is not sufficient legal or regulatory clarity in the U.S. around staking yet, including how staking rewards are taxed and how entities should interpret securities laws for validation relationships. This alliance has the objective and the primary goal to define a legal framework that can be applied to staking services and POS related systems. The group will encourage policy makers and regulators including the U.S Securities and exchanges commission to address tax and compliance challenges for staking services providers to improve the existing framework in the crypto sphere. This new alliance arrives just one day after Coinbase launched Coinbase Custody International Inc, a European entity for handling cryptocurrency deposits including all staking activities.More details and information on this new alliance can be found at https://www.proofofstakealliance.org/
