A group of ten financial services and technology companies have established the Association for Digital Asset Markets (ADAM) – in order to formulate a Code of Conduct (“Code”) for the cryptoasset markets.
The First “Broad-Based” Crypto Organization In The US
ADAM plans to be the first “broad-based organization” in the US to ”proactively seek comprehensive standards” for cryptoasset market participants. The regulatory organization will collaborate with experienced regulators to develop “rules for the efficient trading, custody, clearing and settlement of digital assets.”
ADAM’s regulatory guidelines will aim to “encourage professionalism” and “ethical conduct” by all crypto industry participants. The initiative’s founders want to “increase transparency” by providing accurate information regarding crypto industry practices to regulators and the general public.
Complementing The Current Regulatory Framework
Moreover, ADAM’s Code of Conduct will be designed to “complement” the current (and evolving) global cryptocurrency regulatory framework. ADAM is also planning to gain the “long-term trust” of regulatory policymakers. To achieve this, ADAM’s management will aim to establish “fair and orderly digital asset markets”, so that business owners feel more confident investing capital into the fragile crypto ecosystem.
Duncan Niederauer, the former CEO of the New York Stock Exchange (NYSE) and current ADAM Advisory Board Member, remarked:
Rules are fundamental to the development of any market. Over 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The advent of digital assets requires a similar effort; one that will clarify existing rules and give both investors and regulators the confidence necessary to sustain this market. I applaud the firms leading the ADAM initiative and look forward to advising them on standards that will enable this market to thrive.
Similar to the way in which other crypto-related regulations have been developed, ADAM’s Code of Conduct will have guidelines for “market integrity”, “risk management”, and know-your-customer (KYC) / anti-money laundering (AML) checks.
ADAM: Monitoring Crypto Markets For Manipulation, Conducting Research
Additionally, ADAM will create rules for “custody, record keeping, clearing and settlement.” The regulatory body will also monitor activity in the crypto industry, particularly related to “market manipulation.”
ADAM will take measures to enhance consumer data protection, while conducting research on on other best practices for crypto industry participants.
Adam’s founding members include:
- BitOoda, a cryptoasset consulting focused on “trade execution, market analysis, and structured products”;
- BTIG, a multinational financial services company that mainly offers “institutional trading, investment banking, research and related brokerage services”;
- Cumberland, a crypto-related firm that provides liquidity services to institutions;
- Galaxy Digital, a crypto merchant bank for digital assets;
- Genesis Global Trading, a leading over-the-counter (OTC) crypto trading service;
- GSR, an online trading solution provider cryptoassets;
- Hudson River Trading, a globally accessible multi-asset quantitative trading platform;
- Paxos, the fintech company that launched the Paxos Standard token (PAX),
- itBit, a cryptoasset exchange that provides escrow, custody and OTC trading services;
- Symbiont, a smart contracts platform for “institutional applications of blockchain technology” and
- XBTO, a leading provider of “institutional liquidity” to large exchanges.
The announcement’s press release also noted that ADAM intends to add new members to the self-regulatory group. These members will reportedly be announced in the next few months.
ADAM will open offices in Washington, D.C. and New York.