WASHINGTON, Nov. 09, 2023 (GLOBE NEWSWIRE) — Today, Proof of Stake Alliance (POSA), an action-oriented, nonprofit industry alliance advocating for forward-thinking public policies in proof-of-stake (PoS) ecosystems, announces an updated set of industry-wide staking principles supported by Alluvial, Ava Labs, Bitcoin Suisse, Blockdaemon, Coinbase, Credibly Neutral, Figment, Infstones, Kiln, Lido Protocol, Luganodes, Methodic Capital, Obol, Polychain, Paradigm, Rocketpool, Staking Rewards, and Swell. The POSA staking principles ensure consumer protection and responsible innovation remain paramount as PoS networks and the ecosystems supporting them continue to grow.
The release of these updated Industry-Wide Staking Principles follow the original set of principles published in 2020 after POSA met with the SEC. POSA partnered with Paradigm Policy Lab in order to update these industry principles for the 2023 environment in light of the rapid advancements in the staking space and the need for updated best practices. In brief, the updated principles include:
- Clear communication from service providers to ensure users have all the information necessary to make informed decisions.
- User control over how much of their assets to stake. Users should be able to opt in and service providers should focus on providing access to the protocol and user ownership of staked assets.
- Explicitly delineated responsibilities for service providers. They should not manage or control liquidity for users, or provide guarantees on the amount of rewards earned.
“Coinbase has worked extensively over the past year to help regulators around the world understand what staking is and is not,” said Scott Bauguess, Vice President of Global Regulatory Policy at Coinbase. “Industry adoption of the best practice principles introduced by POSA will serve to further clarify how true staking services are technical services and are not securities, while also preserving consumer protection and responsible innovation.”
“Paradigm appreciated the opportunity to partner with POSA, staking firms, and protocol devcos to develop these principles. They provide an excellent guidebook to policymakers,” said Alex Grieve, Government Affairs Lead at Paradigm.
Earlier this year, in her dissent following the Kraken settlement, SEC Commissioner Hester Peirce stated regulatory solutions need not come from a regulator, citing POSA’s industry principles in the process. POSA agrees with Commissioner Peirce and has doubled down on the principles developed in 2020 to reflect this standing commitment.
“Amid rapid technological advancement, self-regulation from leaders of the proof of stake ecosystem is essential,” commented Evan Weiss, Founder of POSA and Head of Business & Policy at Alluvial. “The updated POSA principles underscore the ecosystem’s commitment to clarity and responsibility, especially in a time of increased scrutiny and misconceptions. Together, we aim to build trust, inform regulations, and champion the boundless potential of the technology.”
The Proof of Stake Alliance (POSA) is an action-oriented, nonprofit industry alliance advocating for forward-thinking public policies that foster innovation in rapidly growing, sustainable, multi-billion dollar proof-of-stake ecosystems. We bring together industry leaders and legal experts to fight for fair regulation that allows the staking industry to flourish. For more information, visit https://www.proofofstakealliance.org/
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