Avalanche's Answer To Crypto Regulation Just Dropped: What's Inside?

Avalanche officially launched the Avalanche Policy Coalition Advisory Council on Tuesday to help shape cryptocurrency regulations as major jurisdictions draft comprehensive crypto frameworks. The council will be chaired by Lee Schneider, General Counsel at Ava Labs, and includes policy experts and senior leaders from across the Avalanche ecosystem.

The announcement comes as the United States, United Kingdom, Australia, South Korea, and other countries actively develop crypto regulation frameworks in 2026. The timing reflects what Schneider described as a "watershed moment" for coordinated policy advocacy in the blockchain industry.

Who Serves On The Advisory Council?

The advisory council brings together figures with experience in both blockchain technology and regulatory policy. Lee Schneider, who chairs the council, serves as General Counsel at Ava Labs, the company that launched the Avalanche platform in 2020.

Other council members include:

• Lord Chris Holmes, a director for the Avalanche Foundation and member of the UK House of Lords
• Bart Smith, CEO of Avalanche Treasury Company
• Laine Litman, COO of Avalanche Treasury Company
• Jolie Kahn, CEO of AVAX One Technology

The council draws from the four entities in the Avalanche ecosystem: Ava Labs, the Avalanche Foundation, and two treasury companies. Schneider told The Block that having these four groups coordinate on policy represents a significant development for the network.

"So for us, that was a watershed moment, now that we have those four groups together," Schneider said. "So the idea was that we're all rowing in the same direction from a policy perspective for the Avalanche ecosystem and obviously for the broader blockchain and crypto as well."

What Are The Coalition's 2026 Policy Priorities?

The advisory council outlined three core priorities for 2026, focusing on issues that affect how blockchain networks operate globally.

Token Classification

The council advocates for clear rules on how tokens are classified as real-world assets increasingly move onto blockchain networks. This includes defining what constitutes a financial instrument versus other types of digital assets and establishing consistent criteria for how intermediaries are defined across jurisdictions.

Infrastructure Neutrality

The coalition argues that blockchain infrastructure should not automatically be classified as financial instruments. The position emphasizes that neutral rails, meaning the underlying blockchain networks that facilitate transactions, should remain neutral and not face the same regulatory requirements as financial service providers.

Internet Access

The council considers open and uncensored internet access a non-negotiable requirement for blockchains to function properly. This priority addresses concerns about network accessibility and the ability for blockchain nodes to communicate across borders without restrictions.

Why Is Global Regulatory Alignment Important?

Schneider emphasized that alignment across jurisdictions will be vital for the industry, though he noted that not all regulations need to be identical. Instead, shared general principles would help blockchain companies operate across multiple markets.

"The top item for us is to make sure that there's some global synergy in the regulations and laws," he said. "If things are too different in major jurisdictions, then that means every time a blockchain or crypto company wants to do something in a new jurisdiction, or wants to launch something that has global applicability, you end up with this disjunction between how things work in different jurisdictions."

Different regions are moving at varying speeds on crypto regulation. The European Union is now implementing its Markets in Crypto-Assets Regulation, known as MiCA. The UK is developing a new regulatory regime set to take effect in 2027. Japan, meanwhile, remains ahead of many peers and continues refining its existing rules.

In the United States, lawmakers are working to pass comprehensive crypto legislation after passing a stablecoin bill over the summer. The Securities and Exchange Commission and Commodity Futures Trading Commission have also begun efforts to modernize their rules for digital assets.

How Does The VanEck AVAX ETF Relate?

The policy coalition launch came one week after VanEck launched the first U.S.-listed spot Avalanche exchange-traded fund. The VanEck Avalanche ETF (VAVX) started trading on January 26, 2026, giving investors direct exposure to AVAX price performance through a traditional exchange-traded product structure.

VanEck waived all sponsor fees for the first $500 million in assets under management or until February 28, 2026, whichever comes first. After the waiver period ends, the sponsor fee will be 0.20%. The ETF eliminates the need for investors to directly purchase and store AVAX tokens while providing regulated exposure to the Avalanche network.

"We're excited to launch VAVX to provide investors with a transparent, exchange-traded vehicle to access a network that we believe will drive the next phase of institutional blockchain adoption," said Kyle DaCruz, Director of Digital Assets Product at VanEck.

Conclusion

The Avalanche Policy Coalition Advisory Council provides the Avalanche ecosystem with coordinated policy advocacy as global crypto regulations develop throughout 2026. The council's focus on token classification clarity, infrastructure neutrality, and internet access addresses fundamental issues that affect how blockchain networks operate across jurisdictions. 

With members holding positions in both the Avalanche ecosystem and broader policy circles, the coalition aims to influence regulations in the US, UK, EU, and other major markets as they finalize crypto frameworks.

Resources

1. Avalanche on X: Posts (January, 2026) 

2. Avalanche Policy Coalition Advisory Council website: General info

3. Report by The Block: Avalanche Policy Coalition unveils advisory council, calls for 'global energy' as crypto rules across the world take shape

4. Press release by VanEcK: VanEck Introduces Another First with Launch of the VanEck Avalanche ETF (VAVX)