The Winklevoss twin brothers are probably the most famous brother’s duo in the cryptocurrencies world. And, whatsoever they say is deemed to become a statement. However, now after continuously expanding their cryptocurrency projects, they have moved a level ahead and proposing regulations.
Alas! It seems quite an irony being in the industry who have been trying to avoid the same, but the owners of Gemini exchange that trades in Bitcoin and Ether have presented a proposition to create the Virtual Commodity Association. Now this organization would police digital-currency markets and its custodians. It means Virtual Commodity Association would primarily be a self-regulatory and non-profit body would formulate industry standards, promoting fairness and transparency and alongside work with US regulators to frame regulations for the cryptocurrency space.
The brothers asserted that the self-regulatory body would work with U.S Commodity Futures Trading Commission to prevent fraud.
“The promise of virtual commodities and their impact on the future will be profound — but individuals and institutions need to feel safe and secure when transacting,” the brothers recorded in a statement. “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.”
It is noteworthy that U.S regulators such as CFTC, and Securities and Exchange Commission (SEC) profoundly depend on self-regulatory organizations, or SROs, that facilitate them to control trading in everything from complicated swaps to shares in the largest of the U.S. companies. The Financial Industry Regulatory Authority, which is financed by the industry, is the prime regulator for Wall Street brokerages.
At Present, no federal regulator has any immediate authority over the multiple exchanges that trade cryptocurrencies in the spot market. Instead, there’s a disorder of state laws that are obeyed as the legal framework. And, as per the critics, these summons exploitation and possible manipulation.
Now, there have been discussions to fill the gap, and CFTC Republican Commissioner Brian Quintenz has also invited for cryptocurrency exchanges to build an SRO. While giving a statement on Tuesday statement, he went all praise for Winklevoss plan.
“I congratulate Cameron and Tyler Winklevoss on their energetic leadership and thoughtful approach in outlining a virtual commodity self-regulatory organization (SRO) concept,” he said. “I encourage Gemini (or any other market participant, an advocacy group, platform, or firm) to be aggressive in promoting these qualities within any SRO construct.”