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Coinbase Custody and Bison Trails joined the Proof of Stake Alliance (POSA), urging regulators to develop provisions that clearly regulate staking and its taxation.
The organization, which was founded in 2019, includes more than 18 members. POSA discusses issues related to the regulation of blockchain and cryptocurrencies, organizes events and training seminars, and advocates for a more loyal approach to regulating staking. Coinbase Custody and Bison Trails will partner with the alliance to advance its regulatory change initiative.
Matt Perona, managing director of Polychain Capital and member of the POSA board of directors, explained that the alliance’s main goal is to change the taxation procedure for remuneration received from staking. In his opinion, only profits from the sale of tokens received as a reward should be taxed, and not the receipt of this reward itself.
The head of the alliance said that the initiative is aimed specifically at creating a regulatory framework conducive to the development of staking. POSA will work directly with the U.S. Securities and Exchange Commission (SEC), the U.S. Financial Crimes Network (FinCEN), and the U.S. Internal Revenue Service (IRS) on issues related to the regulation of digital assets and securities.
Perona added that Coinbase Custody and Bison Trails will conduct training seminars for regulators on the topics “What is Staking and Blockchain”, as well as talk about potential ways to use them. Perona expressed the hope that by explaining the principles of the technology’s work to regulators, you can “instill in them a love for the blockchain” and soften their harsh requirements.
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