New Proof of Stake Alliance (POSA) Created By Several Firms Wanting To Popularize Blockchain In The US
The blockchain technology is facing an important time in the United States. With the regulators and lawmakers looking closely at Facebook’s Libra and Bitcoin, all eyes are looking at cryptocurrencies, the blockchain technology, and all the potential that they have. In order to lobby for the future of the crypto and blockchain industry in the country, the Proof of Stake Alliance (POSA) was created.
In order to protect the interests of the industry, Blockfolio, the Interchain Foundation, and other 10 blockchain companies were reported by The Block Crypto to be coming together in order to form this new consortium.
According to the group, it is evident that the lawmakers are not very well informed about the technology, so it is their goal to “inform” them. That is, lobby to convince them to agree with their vision of how business should be done.
Members of the POSA affirmed that one of the current goals of the group is to get nearer the regulators in order to win their sympathy for their cause and be able to educate them on the blockchain technology.
The founder of the alliance, Evan Weiss, affirmed that the entrepreneurs from the blockchain industry are eager to communicate with the regulators. By starting a dialogue, he believes that they will be able to bring several benefits to the industry.
One of the first key areas that the alliance will focus will be taxation, obviously. Most POSA members have proof of stake consensus protocols, so they are very concerned about how taxes on staking will be done in the country. There is no clear guidance at the moment, so they want to solve this as fast as possible.
Jacob Arluck, the founder of TQ Tezos and member of the POSA, affirmed that the group is trying to pursue legal clarity for staking taxes. People can only invest in this investment method if they know about it and not knowing how to pay taxes is a huge deal that may put some investors off.
The project was born at a good time. The U. S. Internal Revenue System (IRS) urges investors to declare their cryptos but its system was created in 2014 and it has not been updated since then. Proof of stake systems was not implemented until 2013, so this old guideline is far from enough.
Recently, the CEO of Circle, Jeremy Allaire, pointed out during a hearing that there is a mismatch between regulation and the nature of crypto. That is true. Fortunately, now the U. S. government is more open to listening. Because of this, it is the time for associations such as this one to start the hard work in order to defend the interests of the industry.