Industry advocacy alliance, Proof of Stake Alliance (POSA), is set to release a number of recommended standards that firms involved in proof-of-stake (PoS) consensus will follow in order to lessen the regulatory hurdles posed to various networks.
According to the alliance, they held consultative talks with the U.S. Securities and Exchange Commission (SEC) at the start of the year to talk more candidly in regards to their proposals and also give out their white paper that contains various industry recommendations.
The meetings with the SEC were conducted in February and were meant to explain to the regulator how PoS technology works and how the regulatory framework could work.
According to POSA founder and President, Evan Weiss, the members were extremely impressed that the SEC took the time to understand the concept of staking and how it can be successful in the US. Weiss stated that the discussion brings an opportunity for the alliance and the regulator to learn from one other.
“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.”
According to Coinbase’s product manager, Bryce Ferguson, it is essential that industry players engage in an open discussion with the relevant authorities and regulators. He also stated that it is imperative that staking service providers adhere to various standards. He added that it is only through acting as a group that Proof of Stake will succeed.
2/ We believe it’s essential for the staking industry to engage with regulators and policymakers to establish responsible standards. The release of these Industry Driven Solutions is a great step in this direction and we look forward to continued dialogue with key regulators.
— Proof of Stake Alliance (POSA) (@alliance_pos) May 14, 2020