The Proof of Stake Alliance (POSA) is a public policy forum to promote legal research and analysis of the liquid staking industry.
Since publication of their report into liquid staking tokens, the DAO has incorporated much of their findings into our protocol to ensure consistency with the latest regulatory and policy direction that promotes responsible protocol development.
The DAO supports the active and coordinated research into this important area and supports the rationale for liquid staking tokens (LSTs) to be treated as digital commodities, and not securities, swaps, or taxable events.
It is critical that Swell help shape and steer this conversation to promote greater dialogue and understanding between industry and regulatory bodies.
The DAO has since adopted the principles espoused in the report throughout all materials and shall continue to remain aligned to the important work done by forums such as POSA. Joining POSA has additional ancillary benefits including offering the protocol a unique vantage point into adjacent technologies such as distributed validator infrastructure, restaking infrastructure, and more.
For these reasons, the community should consider joining POSA as to support the best possible staking experience for all Swellers in a manner that is informed by the latest policy / regulatory insights.
I strongly agree. Liquid staking is a core piece of infrastructure in any PoS chain, and we’re at a clear inflection point both in global adoption and regulatory attention.
The rising tide floats all boats, and supporting+joining nonprofits like POSA is both a quick mutual win and a way for Swell Network to signal long-term support for the industry writ large.
Thought it would be helpful to give a little background on the Proof of Stake Alliance (POSA)! As liquid staking continues to grow, we must ensure that the ecosystem can continue to thrive in the United States and globally.
About POSA:
Since 2019, the Proof of Stake Alliance (POSA) has sought to create conditions that allow staking to flourish through wider adoption. To date, we’ve:
Pushed back on the notion that newly created tokens should be treated as income by bringing the first lawsuit on crypto taxation against the IRS and engaging top legal experts to educate many others on the proper taxation of staking rewards.
Collaborated with FinCEN/OFAC to facilitate the commercial development of staking as a service (“StaaS”), with the goal of ensuring that validators are not treated as financial entities.
Developed industry principles alongside the SEC to argue that staking service providers should not be viewed as offering investment contracts.
And we’re now dedicating our resources to address regulatory, policy, and tax concerns surrounding liquid staking, DVT, MEV, and other new innovations in proof of stake ecosystems.
As a member of POSA, representatives of Swell will have:
A dedicated, neutral voice to advocate specifically for participants in proof of stake networks
Access to POSA educational resources including white papers, one pagers on policy issues, and talking points.
Participation in key initiative working groups, which include:
Regular meetings for POSA to provide updates and members to exchange information and developments
Access and input on draft white papers/policy papers
Collaboration with the lawyers and/or academics brought in to work on working group resources
Invitations to all-member meetings.
Invitations to lobbying days (in Washington, DC. or virtual)
If there are questions from the community feel free to reach out!
Thank you @POSA. The work you do is absolutely critical to ensure appropriate and informed dialogue between industry and regulators. Keep up the great work and the DAO looks forward to joining the Alliance.
