Stake Alliance certification improves recommendations for vendors
The Stake Alliance (POSA), a non-profit organization representing organizations in the crypto staking industry, published an updated version of its “staking principles” on November 9. The new principles are supported by Ava Labs, Alluvial, Coinbase. , Lido Protocol, Paradigm and ten other industry companies.
POSA represents 15 different organizations in the staking industry, including Alluvial, Ava Labs, BlockDaemon, Coinbase, Credibly Neutral, Figment, Infstones, Kiln, Lido Protocol, Luganodes, Methodic, Obol, Polychain, Paradigm and Staking Rewards.
The main principles were first published in It's in 2020. According to a blog post announcing it, the POSA Stadium Principles are an “industry-led set of solutions” that suppliers can implement to address regulators' concerns and encourage responsible practices. in the industry.
Under the old version of the Staking Principles, providers should not provide investment advice, guarantee the amount of rewards available or indicate that they control protocol in their marketing materials. Instead, they should advertise that their products provide access to the protocol and allow users to improve security. The principles also state that providers should use non-financial terms such as “adjustment award” in marketing materials rather than financial terms such as “interest”.
The announcement of November 9 says that three new principles will be added. First, providers are encouraged to “provide clear communication […] To ensure users have all the necessary information to make an informed decision. Second, users should be able to decide how much of their assets they want to share, which promotes “user ownership of shared assets.” Third, stockholders must have “clearly defined responsibilities” and “must not control or control the amount of funds.” Users”
The crypto staking industry has been criticized by some regulators, who say it is a cover for issuing unregistered securities. Kraken's staking service was shut down by the US Securities and Exchange Commission on February 9. The exchange was ordered to pay $30 million in damages for violating securities laws. However, other stock providers have stated that their stock services are not guarantees. For example, POSA member Coinbase argued that its service is “fundamentally different” from Kraken and does not violate securities laws.
