The Proof of Stake Alliance (POSA) met with the Securities and Exchanges Commission (SEC), to dialogue over the surging adoption of Proof-of-Stake protocols, the substitute to Bitcoin Network’s Proof-of-Work believed to be scalable and efficient.
The alliance consists of Coinbase Custody, Cardano Foundation, Tezos, Polychain, and others; is aiming to improve regulatory coherence on how security laws at the watchdog apply to various blockchains. POSA’s fundamental goal is to oversee legal and precise regulation of the growing proof-of-stake sector.
Developments in SEC meeting with Proof of Stake Alliance
The meetings between POSA and the SEC back in February aimed at enlightening the watchdog on PoS technology; and debate an efficient regulatory structure for STaaS offerings. During the week-long Consensus Distributed virtual conference, the founder of POSA, Evans Weiss, revealed their targets with the SEC, a whitepaper that was published, and also how they plan to offer standards in the industry.
According to Weiss, who is also Chief of Staff at Bison Trails, POSA is aiming to convince the SEC that the staking of networks should be viewed as a service rather than as a product. The businesses that offer staking services should be considered as service providers to financial product providers. Weiss stated:
“We are grateful that they have taken the time to meet with us and start a dialogue around how staking can be successful here in the U.S. We see this discussion as an on-going opportunity to learn from each other, to help ensure that staking-based protocols have the potential to flourish here in the U.S. while also ensuring that consumers and token-holders are protected.”
It is crucial for the industry to dialogue with the watchdogs
Moreover, POSA believes that educating regulatory agencies to understand blockchain technology better is favourable to the entire ecosystem if the underpinning blockchain, instead of the crypto, can circumvent regulation.
Furthermore, the product manager at Coinbase Custody, Bryce Ferguson, noted that it is essential that the industry is holding open dialogues with the regulators. He adds that industry players can guarantee the growth of PoS networks by working together.