Gemini, run by the Winklevoss twins, is one of the most Wall Street-oriented exchanges on the crypto markets. Originally envisioned as “bitcoin in a suit,” it is now leading the way in self-regulation with a new Virtual Commodity Association, a self-regulating group that aims to take the guesswork out of crypto in the future.
“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,” they write.
The group will perform the following functions:
Foster financially sound, responsible, and innovative virtual commodity markets through a system of industry sponsored standards, sound practices, and oversight that promotes price discovery, efficiency, and transparency.
Incentivize the detection and deterrence of manipulative and fraudulent acts and practices, including partnering with regulators and particularly the CFTC to share or refer information, as appropriate.
Require member firms to commit in writing, upon joining VCA, to operating their virtual commodity markets in compliance with Sound Practices, described below; and provide a sanctions based accountability program to compel ongoing member compliance.
Members of the group will follow “Sound Practices,” including the transparency, responsible financial management and security/surveillance associated with more established financial systems. In short, they’re putting the tie on “Bitcoin in a suit.”
Whether or not the twins can pull together this group is anyone’s guess, but it could be gathering steam, especially considering the slow and piecemeal fashion with which the SEC has been working on federal crypto regulation.