In a report published on August 20, Bloomberg revealed that the Co-Founders of Gemini Trust, Cameron and Tyler Winklevoss, have joined some of the largest crypto exchanges in the US to set up a self-regulatory group.
Called the Virtual Commodity Association, Gemini joins Bitstamp, BitFlyer USA, and Bittrex, with representatives from each firm meeting in September to discuss the aims of the group.
Self-Regulation Is On The Horizon
The Virtual Commodity Association looks to develop industry standards, promote transparency and work hand-in-hand with regulatory agencies such as the U.S. Commodity Futures Trading Commission to stop fraud and manipulation in the crypto market.
The group tapped Maria Filipakis as its interim executive director on Monday. Filipakis previously worked for the New York Department of Financial Services and helped create the state’s crypto permit, BitLicense.
The CFTC, the US SEC and other regulators often rely on self-regulatory groups to monitor trading in from small, obscure swaps to shares in the largest firms. The cryptocurrency market currently does not have any federal regulator with direct authority over it, but instead has a patchwork of state laws that serve as a legal framework. Critics say this invites abuse and potential manipulation of the market.
CFTC Commissioner Brian Quintenz expressed optimism towards the creation of the VCA and the partnerships it has formed. Quintenz has long called for the crypto community to develop a self-regulatory organization.
“Given the absence of federal oversight jurisdiction in the crypto market, in February and again in March of this year I called on the crypto platform community to come together and develop a self-regulatory organization-like entity that could develop and enforce rules,” Quintenz declared. “Today’s announcement is a positive step towards that realization.”
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