Investors would like to set a limit on the role that U.S. Securities Exchange Commission and other regulators should play in determining the future of cryptocurrency.
While most of the investors are able to accept that it is a normal role for SEC to take a central part in regulating the way cryptocurrency markets should be, a vast majority of investors feel that SEC and other regulators should keep away from taking matters in to their hands.
The battle about who is supposed to set the regulatory standards for cryptocurrency is already on.
Virtual Commodity Association is a self-regulatory body that is meeting in late September in order to form an organization that will decide on concrete steps to form a self-regulatory body that will decide on the standards to be enforced about cryptocurrency transactions, exchanges, values and legal limits.
The inaugural meeting for Virtual Commodity Association is being led by “Winklevoss twins, BitStamp, Bitflyer USA and Bittrex.”
With the cryptocurrency market trending a significant price weakness, specifically with respect to Ether. While Ether has declined a lot quickly in comparison to its relative market player Bitcoin, Ether has not revealed any true support until now.
Several high-profile blockchain technology companies did raise money via Ether in the past year. Several of those companies that benefited from the backup technology have sold their share of stocks of Ether considering the downtrend of Ether.
Of note, SEC rejected “Gemini” which is the proposed Bitcoin ETF from Winklevoss. However, Winklevoss have become big players in the crypto world. There are yet several other groups with a significant portion of volume being traded in their exchanges in the U.S. and in several other areas.
The Virtual Commodity Association focuses mainly in creating industry standards. The association liaise with regulators inclusive of SEC and US’s Commodity Futures Trading Commission. It is about creating improved transparency in the sector.
The goal of the group is to prevent ruthless hammering of the crypto industry with regulations from government and regulatory agencies.
A true sense of commitment and regulation will be ensured in order to shift the current sentiment on SEC’s with respect to Bitcoin and ETF.
Adam Efrima, the co-founder of a crypto market analysis firm, remarked “many investors and traders believe that the Bitcoin ETF is the necessary trigger for the next bull run in the crypto markets.” The risks and issues will lead to a major step “in the greater goal of mass adoption of blockchain technologies by the general public and even more so by major industries and companies.”
Not everyone is happy about the idea of self-regulation. Darren Marble, CEO of CrownfundX observes “when you have unregulated markets it clearly draws the worst of the worst into the playing field and unregulated markets are like red meat and blood to scammers, hack artists, and scammers. They just can’t help themselves.”
Per Marble, organizations like VCA might not work out as efficiently as a governmental regulation. He also added, “There won’t be “a future where these markets suddenly work themselves out globally.”
Despite all, the crypto industry requires a rigorous structure with major crossroads that will ultimately help fight the major scams.
Cryptocurrency companies should work out a true market policy and commitment that will balance well with government oversight.
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