While debates on the need to bring about regulations over the flourishing cryptocurrency market continue, Commodity Futures Trading Commissioner Brian Quintenz moots the idea, why not self-regulate?
Delivering keynote address at the D.C. Blockchain Summit in Washington, the Commodity Futures Trading Commission chief suggested that a cryptocurrency self-regulatory organization (SRO) could have an impact beyond the U.S. market, and could potentially take on global significance.
The third Annual DC Blockchain Summit was co-hosted by Chamber of Digital Commerce and Georgetown University’s Center for Financial Markets and Policy. At the Summit, global thought leaders from the public and private sectors discussed key market developments, including initial coin offerings, bitcoin futures and ETFs.
The CFTC chief said that during the Commission’s Technology Advisory Committee (TAC) meeting, he suggested a proposal to explore how a private independent organization could perform an oversight function for U.S. cryptocurrency platforms.
“As Congress works with federal and state regulators to determine the appropriate regulatory framework for cryptocurrencies, I believe an SRO-like entity could develop industry standards that could inform, or even serve as a blueprint for, future government regulatory action,” he told the audience.
“An SRO-like, independent regulatory body could create uniform standards for these trading platforms, reduce the possibility of regulatory arbitrage, and avoid duplicative regulation”.
Quintenz cited a movement toward self-regulation in the cryptocurrency sector in the UK and Japan.
In the United States, efforts toward standardization are also underway at the state level. Seven states have agreed to recognize each other’s money service business licenses and a model state virtual currency law has been published.
The seven states are Georgia, Illinois, Kansas, Massachusetts, Tennessee, Texas and Washington.
In his opinion, the area with the greatest need for enhanced regulatory certainty and oversight is the spot market.