A newly proposed cryptocurrency self-regulatory organization put forward by Gemini founders Tyler and Cameron Winklevoss now has support from an important government advocate on the issue.
The U.S. Commodity Futures Trading Commissioner Commissioner Brian Quintenz has persistently advocated for the creation of a cryptocurrency SRO(self-regulatory organization), calling for a move like this during last week’s keynote at the DC Blockchain Summit in Washington, D.C.
In a statement released on Tuesday, he congratulated the Winklevosses (aka the Winklevii) on their “thoughtful approach” to the arena, stating:
“A virtual commodity self-regulatory organization that has the most independence from its membership, with the most diversity of views, and the strongest ability to discover, reveal, and punish wrongdoing will add the most integrity to these new markets. I encourage the Gemini Group to be aggressive in promoting these qualities within any self-regulatory organization construct.”
As detailed in a new blog post from Gemini, Gemini’s proposed “Virtual Commodity Association” would function as a non-profit and independent organization to be governed by a board of directors.
It wouldn’t “provide regulatory programs for security tokens and/or security token platforms” or even function as a trade organization.
The Winklevosses further wrote that the group would be modeled in after the National Futures Association, a self-regulatory organization focused on the derivatives industry.
“We believe that adding an additional layer of oversight on virtual commodity cash markets in the form of self-regulation is important for consumer protection as well as to ensure the integrity of these markets,” they said.
Membership will be open to virtual commodity platforms as well as OTC (over-the-counter) trading firms along with “other trading facilities which are acting as counterparties” which then provide an “all-to-all platform and/or venue, available to United States participants for transacting in the spot virtual commodity markets,” among other types of businesses that service the space.
“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,” the Winklevosses concluded: “We look forward to engaging with industry leaders participants, regulators, and legislators on this proposal.”