A better regulatory environment on the way?
At least that is the hope.
In a recent blog post on the Gemini website, Cameron and Tyler Winklevoss proposed a new Self Regulatory Organization (SRO) for regulating crypto commodities.
The post is titled:
"A Proposal for a Self-Regulatory Organization for the U.S. Virtual Currency Industry"
It can be seen in it's entirety here:
Why create this new SRO?
Currently there is a gap regarding cryptocurrency/crypto asset regulation.
The CFTC has jurisdiction over fraud and manipulation in the crypto asset markets and market participants, but it doesn't have jurisdiction over the cash markets where the majority of trading takes place.
The legal status of whether a token is a security or not lies with the SEC.
However, again, that means there really isn't much regulation, if any, over the crypto asset spot markets.
That is where this SRO would come in, which according to their proposal, would be called the "Virtual Commodity Association".
Cool, how would this Virtual Commodity Association work?
Basically, the goal would be to provide more oversight where some of the other agencies leave off.
It would function as a non-profit, independent organization governed by a board of directors.
It would be modeled in part after the National Futures Association, an SRO focused on the derivatives industry.
This organization will be made up mostly of Virtual Commodity Platforms as well as other OTC Trading Firms, among other types of business that service the space.
Why this is needed:
The Winklevoss twins wrote this in regards to why they are proposing this new group:
"We believe adding an additional layer of oversight on virtual commodity cash markets, in the form of self-regulation, is important for consumer protection and to ensure the integrity of these markets."
And then this:
"We believe a thoughtful SRO framework that provides a virtual commodity regulatory program for the virtual commodity industry is the next logical step in the maturation of this market."
And this:
"We look forward to engaging with industry leaders participants, regulators, and legislators on this proposal."
(Source: https://www.coindesk.com/cftc-official-backs-winklevoss-brothers-crypto-self-regulation-bid/)
It appears they may not be too far off... It's already getting major endorsements.
Check out this response from CFTC Commissioner Brian Quintenz:
"Ultimately, a virtual commodity SRO that has the most independence from its membership, the most diversity of views, and the strongest ability to discover, reveal, and punish wrongdoing will add the most integrity to these markets. I encourage Gemini (or any other market participant, advocacy group, platform, or firm) to be aggressive in promoting these qualities within any SRO construct."
(Source: https://www.coindesk.com/cftc-official-backs-winklevoss-brothers-crypto-self-regulation-bid/)
It appears these ideas might have some real sticking power!
The sooner we can get some clarity on regulations for all parties involved, the sooner some of these things can start going back up again.
Stay informed my friends.
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