What's at
Stake?

The Proof of Stake Alliance advocates for clear and forward-thinking public policies that foster innovation in the rapidly growing, sustainable, multi-billion dollar proof-of-stake ecosystem.

Our Mission

We believe that proof of stake technologies will underpin the successful future of the internet of value. We seek to create the conditions that will allow staking to flourish through wider adoption. We fulfill our mission by:

Advocating in favor of policies that support, grow, and protect proof-of- stake-based technologies

Educating legislators, regulators, and the public on issues that impact proof-of-stake technologies and those who use them

Empowering participants in proof-of-stake networks by amplifying their voices

News

Since its inception the Proof of Stake Alliance has advocated for fair tax treatment of staking rewards. In 2019, POSA briefed policy makers on Capitol Hill and at the Treasury Department about “proof of stake,” a new form of coming to consensus on a blockchain, and the cryptocurrency tokens that are created by participants in such networks. But the IRS did not develop clear guidance on the taxation of these increasingly popular tokens.

For the 2019 tax year, taxpayer Joshua Jarrett paid income tax on the Tezos tokens (tez) he created by staking. He then petitioned for a refund on the grounds that staking rewards are new property he created, and like other created property these tokens may only be taxed when sold. The IRS did not respond, forcing Jarrett to file suit. Recently, the IRS offered to grant Jarrett a refund, an indication that the agency now agrees that his staking rewards are created property and should be taxed as such. However, the IRS has not explicitly confirmed this view, so Jarrett has rejected the IRS’s offer of a refund in order to pursue a definitive court ruling that his staking rewards do not give rise to taxable income until they are sold.

POSA supports Jarrett’s efforts – his case is important for millions of American taxpayers and for the future of this growing industry. Read more in our press release and additional materials.

Resources