Winklevoss owned cryptocurrency exchange, Gemini, have established a working group that has been designed to allow crypto exchanges in the United States to self regulate themselves in lieu of any regulations from the SEC and other relevant authorities. This seems to be an attempt to show authorities that exchanges in the US are intent on making the environment safer for traders and investors.
The working group, now known as The Virtual Commodity Association (VCA) is led by the Winklevoss twins and includes the membership of Bitstamp, bitFlyer, Bittrex and of course, Gemini. As it stands, membership will be limited whilst the full logistics for the VCA can be worked out, in time for their first official meeting in September.
The end goal of the VCA is to establish working regulations that will allow exchanges to work on a level playing field, under this self regulatory body. It’s humble and its a great way to tackle the lack of regulation imposed by the SEC. Moreover, this could well prevent the SEC from creating the wrong sorts of regulations. In essence, the VCA could develop a framework that could in turn inform the wider SEC regulations, should such regulations ever be developed.
The initial meeting in September will allow all VCA members to discuss guidelines for future memberships, and of course, to discuss how and which sorts of regulations should be imposed on its members. They are also going to need to discuss how to recruit members as ultimately, membership needs to pair up with some mutual benefits for the exchange.
According to RTT News, Nejc Kodric, the CEO of Bitstamp has said:
“We believe in the value of self-regulation, which we pursued in Europe almost from our inception, and look forward to following a similar path in the U.S. Those that can’t or won’t comply with regulations put consumers – and their own operations – at risk.”
See more for yourself, here.
It’s interesting to see that Coinbase isn’t on this list just yet, though we do assume that in good time, some members of the Coinbase team will want to sit on this working group too. The VCA isn’t going to implement any ground breaking regulations just yet, but, they could look to start doing the job of the SEC for them, paving out a new path for the future of crypto in the United States.