The United States’ leading firm, the Blockchain Association has started the Market Integrity Working Group to back the public policy’s development. The strategy aims at ensuring the transparency and fairness of cryptocurrency markets.
The working group is co-chaired by the two cryptocurrency giants, Ripple and Coinbase. Among co-chairperson is Breanne Madigan, Ripple’s Head of Global Institutional Markets, and Rachel Nelson, Coinbase’s Senior Director and Associate General Counsel – Regulatory. Both the co-chairperson will guide the working team on the improvement and fairness in cryptocurrencies and their markets.
As there is massive discomfort about the legitimacy of cryptocurrency markets, and this has stopped the virtual assets to reach full consumer and institutional adoption. Moreover, there are more suspects on the regulatory of the virtual assets; therefore, fairness and transparency of market integrity are needed.
As per the Medium post, Blockchain Association of the U.S. stated that for the improvement in market integrity and for providing consumers with the confidence, Congress is needed to legislate. The Blockchain Association’s post on a platform Medium says:
“To improve market integrity and provide consumers with confidence they deserve, Congress may need to enact legislation to support the orderly and secure functioning of crypto markets. Such legislation could expand the Commodity Futures Trading Commission’s (CFTC) authority to include the regulation and oversight of digital commodity exchange markets.”
Furthermore, due to different regulatory frameworks proposed by each state of the U.S, there are various impediments to new exchanges in their entrance into the cryptocurrency markets.
These frameworks impede the entry of new exchanges and are an abidance burden for the exchanges that already exist. Further, they stop consistency in the regulation of virtual commodity exchanges and make consumers’ ability complicated for understanding the inadvertence of exchanges they use.
Besides, such regulations produce manipulation and inflation in the market and inhibit digital assets to access wider adoption. In addition, a report unveiled by Bitwise claims that 95 percent of the total trading volume of Bitcoin in different exchanges is not accurate. News like this has further ignited the discussion over the security and authenticity of cryptocurrency exchanges. Concerns are shown by the U.S. Securities and Exchange Commission for the protection of cryptocurrency exchanges. Also, SEC said that it would approve to set up an ETF if and only it does not create manipulation in trading volume.
This makes sense that due to the non-regulatory insight, 95 percent of the trading volume by the exchanges was misrepresented as a fake volume.
Therefore, the Blockchain Association’s Market Integrity Working Group will provide a precise regulatory mechanism for enhancing market integrity and the promotion of broader adoption of cryptocurrencies.
Image Source – Shutterstock
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