Banding together in the cryptocurrency industry will often lead to innovation and better infrastructure. Earlier this week, the Proof of Stake Alliance, or PoSA was formed. Their objective is to bridge the gap between blockchain projects and regulators, primarily in the United States. It is an interesting idea which could prove beneficial to the crypto industry as a whole.
The PoSA Purpose
If one has to wait for regulators to come up with official cryptocurrency guidelines, it seems unlikely that anything will change in the near future. Especially in the US, there doesn’t appear to be any sense of urgency in this regard. While that might be a good thing in the eyes of some enthusiasts, it does hinder the growth of cryptocurrency in this particular country.
The Proof-of-Stake Alliance, or PoSA, aims to change all of that. Their objective is to actively engage in an open dialog with regulators and policymakers. One of the main points of focus comes in the form of taxation, as the current guidelines are still a bit unclear. Given how staking rewards can be labeled as passive interest, further clarification on this front is required sooner rather than later.
Who are the Members?
Based on the information provided to us at this time, it seems there are a dozen different members who make up the Proof of Stake Alliance. Notable members include Blockfolio, Tezos, Enigma, and Cosmos. It is plausible to assume this list will be expanded upon in the coming months and years, although no further details have been provided at this time.
The bigger question is how much “clout” all of these members can bring to the table. When sitting down with regulators and policymakers, everyone needs to be on the same page. Since all of these projects are seemingly exploring very different ventures, it will be interesting to see how long this new alliance can hold up. On paper, the idea is more than solid, but in reality, things may work out in a different fashion.
Will it Work?
It is not the first time a consortium of blockchain projects is created. Nor is the first time they aim to persuade regulators and policymakers in one way or another. Most of these previous ventures have either disbanded or failed to meet their intended goal. It is not as easy to navigate legislative and regulatory spheres, especially not for individuals and companies active in the cryptocurrency world.
By joining forces, all of these projects attempt to send a strong signal to lawmakers across the United States. Engaging in an open dialog can have a positive impact on proof-of-stake projects, although it seems unlikely that any major changes will occur in the foreseeable future. Most policymakers don’t look beyond Bitcoin, let alone focus on projects which offer something as “complex” as stake rewards.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.