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Cameron and Tyler Winklevoss, the founders of the Gemini Cryptocurrency Exchange unveiled a proposal who seeks to see American cryptocurrency platforms establish a self-regulatory organization (SRO).
The brothers announced their proposal for the "Virtual Commodity Association" (VCA) in a blog post, stating that such an organization is needed to help the market continue to grow and mature.
"We believe that a thoughtful SRO framework that provides a virtual commodities regulatory program for the virtual commodities industry is the next logical step in the maturation of this market. We look forward to talking with industry leaders, participants, regulators and legislators on this proposal. "
The VCA would be open to all cryptoasset trading sites that serve US customers, and members should agree in writing to abide by certain rules governing security, tax management, and information sharing. Members would not be allowed to list security tokens unless they have obtained securities trading licenses.
The Winklevoss twins have been among the loudest voices in the industry in favor of regulation. Gemini, in particular, is part of a select group of companies that will be granted a BitLicense license under the controversial regulatory framework of New York's cryptocurrency.
At present, the Commodity Futures Trading Commission (CFTC) classifies Bitcoin and other cryptocurrencies as commodities, which means that their spot markets are not subject to CFTC supervision except for fraud or manipulation of market.
However, the brothers noted in their proposal that cryptoassets fulfill a very different role in the market than oil, grain and other products. They pointed out the "strong speculative interest" fueling the demand for cryptoassets, the relative shortage of cases of commercial use, the low transaction costs associated with trading these assets and the large number of individual investors who participate in these markets. regulatory standards.
Calls for exchanges to establish an intensified self-regulatory body recently after Securities and Exchange Commission (SEC) issued a statement warning that cryptocurrency exchanges violated federal regulations for them to read the OIC tokens that the agency classifies as titles.
CFTC Commissioner Brian Quintenz – who last month encouraged trade and other market players to adopt self-regulation and adopt cybersecurity, insider trading and ethics standards – a referred to Gemini's proposal on the CFTC website.
"Ultimately, a virtual OAR that has the most independence from its members, the greatest diversity of views and the greatest ability to discover, reveal and punish the mistakes will bring the greatest integrity to these markets I encourage Gemini (or any other market participant, advocacy group, platform or company) to be aggressive in promoting these qualities within any ORS concept ", he said.
Notably, American stock exchanges are not the only ones to consider adopting self-regulatory standards. Earlier this month, Japan's 16 licensed cryptocurrency exchanges announced that they were forming a self-regulatory body – a decision that was taken in reaction to the bankruptcy of the Tokyo Coincheck Stock Exchange, who still has not obtained regulatory approval. ]
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