#91 - Liquid Staking Tokens as Non-Securities with POSA

Law of Code

The Proof of Stake Alliance (POSA) is an action-oriented, nonprofit industry alliance advocating for forward-thinking public policies that foster innovation in rapidly growing, sustainable, multi-billion dollar proof-of-stake ecosystems. POSA brings together industry leaders and legal experts to fight for fair regulation that allows the industry to flourish. Guests include:

Alison Mangiero (@AMangiero) is the Executive Director of the Proof of Stake Alliance.

Alexander Grieve (@AlexanderGrieve) is Vice President in Tiger Hill Partners’ government relations practice.

Justin Browder (@jlb410) is a partner in Willkie's Asset Management Department and Co-Chair of the Willkie Digital Works practice.

Michael Selig (@MikeSeligEsq) is counsel in the Asset Management Department and a member of the Willkie Digital Works practice.

The Proof of Stake Alliance recently published legal/regulatory white papers on liquid staking. Liquid staking is a technological solution that provides liquidity and increased capital efficiency for participants in proof of stake blockchain networks; users who stake their cryptoassets receive transferable Receipt Tokens that evidence ownership of (i) the staked cryptoassets, and (ii) Network Rewards that accrue in respect of such staked cryptoasset.

The papers represent the first public legal research and analysis of liquid staking tokens under U.S. federal securities, commodities, and tax law, with the aim to resolve key legal questions around the regulation & taxation of liquid staking in the U.S.

Papers:

U.S. Federal Securities and Commodity Law Analysis of Liquid Staking Receipt Tokens

U.S. Federal Income Tax Analysis of Liquid Staking

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