Coindesk Logo

Coinbase Custody, Bison Trails Join Proof of Stake Alliance to Push for Clearer Crypto Regulations

Coinbase Custody, Bison Trails Join Proof of Stake Alliance to Push for Clearer Crypto Regulations

Coinbase Custody, Bison Trails Join Proof of Stake Alliance to Push for Clearer Crypto Regulations

Coinbase Custody and Bison Trails have joined the Proof of Stake Alliance, a lobbyist organization hoping to clarify the legal treatment of staking rewards in the U.S.

Coinbase Custody and Bison Trails have joined the Proof of Stake Alliance, a lobbyist organization hoping to clarify the legal treatment of staking rewards in the U.S.

Coinbase Custody and Bison Trails have joined the Proof of Stake Alliance, a lobbyist organization hoping to clarify the legal treatment of staking rewards in the U.S.

AccessTimeIconJan 30, 2020, 1:10 PM
Updated Aug 19, 2021, 12:31 AM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Coinbase Custody and Bison Trails have joined the Proof of Stake Alliance (POSA), a lobbying organization hoping to push regulators to clarify the legal treatment of staking services.

Announced Thursday, the lobbying group said having the two companies on board adds weight to its mission of advancing the proof-of-stake (POS) industry. Other members of the group include Tezos, the Interchain Foundation and the Web3 Foundation. 

Coinbase, based in San Francisco, is one of the largest crypto exchanges in the U.S., while Bison Trails provides blockchain infrastructure tools. Both companies are members of the Libra Association, the Facebook-led global stablecoin project.

Proof-of-stake is a type of consensus algorithm by which a blockchain network can mint new coins and advance the chain. Unlike proof-of-work (PoW) mining, in a PoS network, holders with more coins have more power to validate transactions and process consensus.

According to a press release, the alliance believes there is not sufficient legal or regulatory clarity in the U.S. around staking yet, including how staking rewards are taxed and how entities should interpret securities laws for validation relationships.

The group will encourage policy makers and regulators including the U.S Securities and Exchanges Commission to address tax and compliance challenges for staking services providers. 

“Proof of Stake is an increasingly important innovation that the crypto space as a whole is rapidly trending toward,” Sam Mcingvale, CEO of Coinbase Custody, said in the statement.

The announcement comes a day after Coinbase launched Coinbase Custody International Inc., a European entity for handling cryptocurrency deposits. The new entity will carry out "all staking activity performed by Coinbase," the exchange said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.