Coinbase Custody, Bison Trails join new blockchain lobbying group POSA

BlockchainBlockchain projects that rely on proof-of-stakeproof-of-stake consensus algorithms are increasingly in consensus that they need to join together to be heard. 

The fledgling Proof of Stake Alliance (POSA), an advocacy organization that focuses on legislative affairs and educational campaigns, today welcomed two new members, Coinbase Custody and Bison Trails, bringing POSA’s member list to 18. (Disclaimer: ConsenSys, which funds Decrypt, has also invested in Bison Trails.)

Why a proof of stake blockchain alliance is lobbying Congress

U.S. lawmakers struggle to understand the blockchain industry. But some blockchains are more misunderstood than others, according to the latest crypto-focused lobbying group taking the fight to D.C. A group of cryptocurrency industry insiders and attorneys recently launched the Proof of Stake Alliance (POSA)—an organization dedicated to educating regulators on the key differences between proof-of-stake (PoS) blockchains, such as the much-ballyhooed Cosmos, and the energy-guzzling proof-of-work s...

A group of 12 blockchain projects and organizations formed POSA in August 2019, among them TQtezos, an incubator for the Tezos network, and Blockfolio, a crypto portfolio tracking app. Within the last five months, 0(1) Labs, Solana, Web3 Foundation, and Ava Labs have signed on, skewing membership toward labs and POS networks. Coinbase Custody, which sells offline storage, and Bison Trails, a platform for running node clusters, bring some diversity to the ranks.

POSA’s primary goal is to help legislators and regulators understand how proof-of-stake networks function. Whereas Bitcoin is very much in the public and legislative consciousness, it’s a proof-of-work blockchain. Fewer understand how proof of stake works, but it’s important for blockchain businesses that they do. As POSA board member Ryón Nixon told Decrypt in August 2019, “Stakable assets have unique legal, regulatory and tax issues, which—given the number of protocols utilizing this consensus mechanism—must be addressed sooner rather than later.”

Bison Trails CEO Joe Lallouz indicated in a press release that the company has joined to capitalize on progress POSA has made: “The blockchain ecosystem has been well-served by the efforts of the Proof of Stake Alliance, particularly the Alliance's work to bring clarity to the legal and regulatory implications of staking on Proof of Stake blockchain networks.” Joining, he said, is a chance to push further adoption.

But Coinbase Custody CEO Sam Mcingvale implied there’s more to be done before blockchain organizations see the benefits: “It’s our hope that through the work of organizations like POSA, we’ll start to see meaningful conversations and, in time, clarity when it comes to POS and its applications.”