The founders of Gemini crypto exchange Cameron and Tyler Winklevoss have disclosed that are searching for US trading platforms based on crypto transactions in order to form a self-regulatory organization (SRO).
On 13 March 2018, the President at Gemini, Cameron Winklevoss posted an official proposal for the U.S. “Virtual Commodity Association (VCA)”, bringing the reason that such an organization is useful for the market’s development.
“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. We look forward to engaging with industry leaders, participants, regulators, and legislators on this proposal.”
All US-based crypto exchanges are invited to join the association
The VCA proposal is open to all platforms offering exchange services based on crypto assets across the US. Members who choose to be part of the VCA are required to sign a written agreement that obeys the rights and obligations imposed by the regulations in force. Once they become a member, they will not be able to enumerate security tokens if they do not have a trading license.
Currently, the Commodity Futures Trading Commission (CFTC) compares digital assets with commodities, which means that once their markets show no fraudulent interest, they do not enter under the CFTC’s supervision. Brothers focus in their proposal on the fact that cryptocurrency occupies a unique position on the market, even besides that of oil, grain or other commodities.
Gemini’s proposal comes after Securities and Exchange Commission (SEC) published a statement warning crypto trading platform that numerous violations of the US regulation has occurred.
The Commissioner of CFTC Brian Quintenz who appreciated the idea of Gemini, posted on the official CFTC’s website that “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”.
Crypto exchanges based in the US are not the first to plan a self-regulatory organization. We want to remember that earlier this month, Japan’s authorities have announced the establishment of such an organization together with 16 crypto platforms.