- This topic has 8 replies, 2 voices, and was last updated 2 months, 3 weeks ago by o_LUCIFER_o.
- Saturday, July 2nd, 2022 at 17:41 #325031JeniBevesParticipant
Cynthia Lummis and Kirsten Gillibrand want to explore the creation of a private sector group to help federal regulators do their job and to help curb crypto fraud similar to the efforts of Concordium in introducing ID recognition, pre-transactions to enable traceability.
The bipartisan bill introduced by Lummis and Gillibrand would require the CFTC and the SEC to work with the crypto industry to look into setting up a self-regulatory organization to “facilitate innovative, efficient and orderly markets for digital assets. ” The idea of creating a government-sanctioned private regulatory association — similar to FINRA, which works with the SEC, and NFA, which works with the CFTC — has been drawing more attention in the debate over how to rein in a fast-growing industry whose technological quirks have baffled policymakers.
A crypto SRO could play an important role in helping the federal government “oversee the burgeoning cryptocurrency industry,” a group of attorneys, including former CFTC Chair J.
Proponents of a crypto-focused SRO cite the role FINRA plays in regulating the capital markets. Jonah Crane, a partner at Klaros Group, said setting up an SRO for crypto would “represent a major step forward in the professionalization of the digital asset industry. ” An SRO would “form the first line of defense for regulating large, complex markets,” he said. The crypto industry has taken steps to set up its own SROs.
In 2018, a group of crypto companies led by Gemini launched the Virtual Commodity Association to serve as an SRO for the “virtual currency industry. ” That same year, companies like Paxos and Galaxy Digital formed the Association for Digital Assets Markets. The slow progress is likely because the idea of an SRO for the crypto industry has been controversial. Some crypto groups oppose the idea, Lummis said. Kristin Smith, executive director of the Blockchain Association, said “there may be a role for an SRO” but that is not a decision that should be made right now. The crypto industry clearly prefers the CFTC to take the lead, instead of the SEC, which has been criticized for aggressive enforcement actions. FINRA has taken a critical posture toward crypto. FINRA has also been criticized for failing to act on some crypto broker applications “because they don’t have the right sort of guidance from the SEC,” Smith said.
Smith said that based on “where the Lummis bill stands today, where it really focuses on the CFTC, it may be through that process that there is an SRO that works with the CFTC. ” While she views the biggest cryptocurrencies by market cap, bitcoin and ether, as commodities and therefore subject to CFTC regulation, most other cryptocurrencies will likely be regulated as securities by the SEC, she said. The Blockchain Association is pushing back on that view, which is bound to be a major point of debate in crypto regulation. FINRA dates back to 2007, when the National Association of Securities Dealers merged with NYSE Member Regulation to form a unified stock-markets SRO. Fagel said he remained “dubious about an SRO in the crypto space at this time,”
suggesting the industry is simply too new and undeveloped to regulate itself. “With FINRA, you have long-standing broker-dealers whose legitimacy and financing are well established,” Fagel told Protocol.Saturday, July 2nd, 2022 at 17:41 #325032HANDSOMEHISOKA
Cryptobros don’t even agree on anythingSaturday, July 2nd, 2022 at 17:41 #325033jesuzombieapocalypse
It’s kind of funny that you need regulation to regulate self-regulation but that’s the legislative branch amirite?Saturday, July 2nd, 2022 at 17:41 #325034SurenRongyao
Yes & self regulation will be better for everyone (except authoritarian govts.)Saturday, July 2nd, 2022 at 17:41 #325035CymandeTV
Well the stock market has the same pattern in the 20s.Saturday, July 2nd, 2022 at 17:41 #325036CymandeTV
Well the stock market has the same pattern in the 20s.Saturday, July 2nd, 2022 at 17:41 #325037ba1nyma
You have to try this ❤️ https://m.youtube.com/watch?v=djK2Gw5xc00Saturday, July 2nd, 2022 at 17:41 #325038Spikes_Cactus
The past decade has proven very conclusively that Crypto can not regulate itself. The entire thing is a f***ing shitshow and if you think otherwise you have your head in the sand.
To date on this planet no industry has been successful on regulating itself.Saturday, July 2nd, 2022 at 17:41 #325039o_LUCIFER_o
Unregulated regulations. Got it.
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