The Proof of Stake Alliance (POSA), an industry advocacy group, is publishing a series of recommended standards for companies participating in a proof-of-stake consensus protocol in an effort to reduce regulatory clampdowns on different networks.
The group met with members of the U.S. Securities and Exchange Commission (SEC) earlier this year to discuss their proposals and discuss staking more broadly, as well as submit a white paper detailing the industry recommendations. The alliance includes Bison Trails, Coinbase, Polychain, Tezos and the Cardano Foundation, among others.
“We’re coming out with some industry-driven solutions around staking as a service which we believe will really help push the ecosystem forward and ensure that staking as a service and staking can grow in the U.S. without being subject to some regulatory landmines and hurdle,” said Evan Weiss, the group’s founder.
Weiss, who is also chief of staff at Bison Trails, said the idea is entities that stake networks can be seen as service or infrastructure providers, rather than financial product providers.
The recommendations shared with the SEC are essentially:
- Don’t provide investment advice to market participants
- Don’t call staking rewards “a profit opportunity”
- Focus advertising on network participation and security
- Don’t indicate the service provider has control over inflation rate
- Don’t provide guarantees on staking rewards
“I do think [with] these networks, we are very clearly seeing that the technology underlying them is very powerful and I see it having an impact, maybe not in the next few months but in the next year or two,” Weiss said.
The group used Tezos and Cosmos as two examples of proof-of-stake networks that are already live, he said, with questions focusing on how they work.
Polkadot and NuCypher are another set of networks that haven’t quite launched yet, but which the group hopes to use…