With cryptocurrency markets coming under increased scrutiny from government regulators, some have openly called for industry players to take a more active role in regulating themselves. Cameron and Tyler Winklevoss have apparently decided to take up that challenge. The twins have proposed the creation of a self-regulatory organization (SRO) that they are calling the Virtual Commodity Association.
According to Fortune, the SRO would tackle a number of challenges, including the development of industry standards, policing the volatile crypocurrency markets, and watching over industry actors to guard against bad behavior. The organization would also work with regulators to protect investors from fraud and promote greater industry transparency.
The proposal suggests that financing for the new organization would come from member fees. Virtual Commodity Association membership would be limited to companies that serve U.S. customers, with members agreeing to meet the SRO’s requirements for “fiscal responsibility, cybersecurity and information sharing.” The group would also have the authority to punish members who violated its rules.
CFTC Commissioner Brian Quintenz had previously urged the industry to create such an organization. On Tuesday, he gave the Winklevoss brothers high marks for their proposal:
“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.”