According to a statement, VCA, an association created by Gemini Trust Co-founders Cameron and Tyler Winklevoss has members within the crypto exchange community including Bitstamp, BitFlyer USA, and Bittrex.
Virtual Commodity Association Arises to Watch the Crypto Industry
Virtual Commodity Association an initiative started by Gemini Trust Co-founders Cameron and Tyler Winklevoss is stepping out to police the $214 billion cryptocurrency industry. Representatives from up to four different markets will meet in September to discuss setting up the self-regulating organization. The Virtual Community Association is formulated to develop industry standards, promote transparency and link regulators to crypto companies.
Among a list of other goals, the association intends to prevent fraud and manipulation in markets for digital assets. The group on Monday 20 named Maria Filipakis as its interim executive director. Maria who once worked for the New York Department of Financial Services help create the state’s cryptocurrency permit referred to as BitLicense.
Moreover, Major government regulators in the United States like the CFTC, Security and Exchange Commission heavily rely on self-regulatory organizations to monitor trading in any community. These sorts of trading range from obscure swaps to shares in the largest U.S corporations. In the meantime, no government regulator has direct authority over cryptocurrency exchanges in the United States.
How Cryptocurrency Industry is regulated in the U.S
A series of state laws enacted to serve as a legal framework for cryptocurrency and digital assets. However, these laws are criticized as easy targets of potential abuse and manipulation.
“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,” Brian Quintenz, a CFTC commissioner, said in a statement. “Today’s announcement is a positive step towards that realization.”
Meanwhile, the Winklevoss attempts to introduce a bitcoin-based Exchange Traded Funds have been let down by SEC twice now. The commission claims that bitcoin lacks adequate regulation and an overseer to avoid market manipulation. It is clear that the Winklevoss brothers are trying to create an independent entity that would police the cryptocurrency industry. However, it is to convince SEC that market manipulation is impossible. Once that is fulfilled SEC will have no reason to object the Winklevoss Bitcoin ETF Proposal.
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