Market Integrity Working Group spearheaded by Two executives at Coinbase and Ripple Advise US Regulators for Crypto-Friendly Policies. The group will study particular problems facing the crypto industry and potential regulations. Moreover, the group also highlights the “labyrinthine patchwork of state-by-state” regulations in the US.
07 February, 2020 | AtoZ Markets – A new working group, led by senior employees of Ripple and Coinbase, will advise US regulators on crypto-friendly policies. A Washington-based advocacy group called the Blockchain Association represents several high-profile crypto companies. Earlier, it launched a working group called Market Integrity Working Group to push for a US regulatory framework. The new group is co-chaired by Breanne Madigan, head of Ripple’s global institutional markets; and Rachel Nelson, Coinbase’s senior director.
But members of Congress are too busy preparing for the upcoming elections. So, US crypto companies will have to continue hula-hooping through state regulations in the near future.
Market Integrity Working Group for Crypto-Friendly Policies
Experts confirm that federal crypto legislation is not exactly an urgent matter for Congress. Carol Goforth, professor at the Arkansas University, said that lawmakers focused primarily on the impeachment hearing in the short term. Now they will focus on the next 2020 presidential election:
“In one way or another, the looming 2020 election cycle will probably take precedence. However, in the long run, legislative action may be needed as a practical matter.”
As leader of the Market Integrity Working Group, Nelson and Madigan intend to advise regulators on how public policies can stimulate the crypto industry. In particular, they are planning to improve market integrity and provide consumers “the trust they deserve”.
In particular, the organization highlights the “labyrinthine patchwork of state regulations” in the United States. It is one of the major obstacles for crypto companies. It ultimately results in significant barriers to entry for new exchanges and a complicated compliance burden for existing exchanges. Market Integrity Working Group concludes:
Consumers and cryptocurrencies exchange deserve a clear regulatory framework. The clear regulatory framework would improve market integrity and guide consumer adoption of cryptocurrencies.
The Working Group Would Pick the CFTC Over SEC
Besides, the Market Integrity Working Group’s bill “could expand the authority of the Commodity Futures Trading Commission (CFTC). It includes regulation and supervision of digital commodity exchange markets”, as per Madigan and Nelson. Graham also said:
The CFTC has a long history and experience in monitoring health and the integrity of the markets. So we think they are a good reference point.
He added that the SEC is also a rather important entity to them, but that the main focus will be on the CFTC. However, observes Goforth, appropriate legislation would stop “a colossal waste of resources” that is happening due to US regulators dealing with the case-by-case basis:
“Currently, the SEC is spending large sums of money to resolve a question. The question is crypto tokens with a purpose other than to act as a currency substitute are securities or not. This is occurring in both the Kik and Telegram controversies. Although the courts agree with the agency’s analysis that still leaves several regulatory requirements that were never designed with interests like crypto tokens.”
Andrew Mount, an associate at Bressler, Amery & Ross, PC, suggests that “we are heading towards federal crypto regulation.” The number of important cases involving crypto continues to accumulate. But he also stresses that “nobody knows when it will happen”. As Goforth argues, it would make more sense to broaden the SEC’s reach:
“They haven’t had to develop disclosure standards or exemptions. Moreover, they seem less well-positioned to protect potential crypto entrepreneurs, markets or buyers. Changing the securities laws to cover crypto-assets specifically, and directing the SEC to adopt exemptions seems to be a more efficient approach “.
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