Tyler and Cameron Winklevoss – credited with becoming the first crypto billionaires – publicly proposed the creation of self-regulatory organization, the “Virtual Commodity Association” of the cryptocurrency markets. The development of such an organization is imperative for the overall advancement of the crypto space. A Commodity Futures Trading Commission (CFTC) Republican Commissioner has lauded the Winklevoss initiative.
Winklevoss Twins, founders of the Gemini trading platform, intend to create the Virtual Commodity Association (VCA) to oversee cryptocurrency markets. The self-regulatory, non-profit organization will work closely with U.S. regulators like CFTC to preclude fraud and increase transparency in the market.
VCA To Help Investors Feel Safe And Secure While Trading
Since the beginning of the year, governments have stepped up to regulate cryptocurrency market, which many think is a Wild West for investing. Hence, the bullish duo’s initiative will also help to change the image of the cryptocurrency industry.
As noted on Bloomberg, the brothers stated:
“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. 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.”
According to the Winklevoss brothers, in the past self-regulatory organizations (SRO) have worked with regulatory bodies in harmony to protect and police different markets. The VCA aims to do just the same, police and protect the crypto market. The main purpose of the VCA will be to detect any manipulative and fraudulent practices or participants in the crypto space.
At present, no federal regulator has direct control over crypto exchanges. The initiative comes at the right time when the Securities and Exchange Commision (SEC) is eagle eyeing crypto exchanges.
CFTC Commissioner Praised The Winklevoss Initiative
The Winklevoss idea of creating a self-regulatory organization to police cryptocurrency markets was praised by Brian Quintenz, CFTC Republican Commissioner, who said
“I congratulate Cameron and Tyler Winklevoss on their energetic leadership and thoughtful approach in outlining a virtual commodity self-regulatory organization (SRO) concept. I encourage Gemini (or any other market participant, advocacy group, platform, or firm) to be aggressive in promoting these qualities within any SRO construct.”
The VCA will be a non-profit organization that will not operate any cryptocurrency market. It will not be a trade association and will work under global standards for self-regulatory organizations. Cryptocurrency trading platforms that serve U.S. investors are allowed to participate in the SRO. Participants will have to comply with sound practices to promote transparency and efficiency in the market.