Winklevoss Twins Call for Creation of Cryptocurrency SRO-Like Entity

Cameron and Tyler Winklevoss, the twins best known for operating digital-‎currency exchange Gemini, have called operators in the cryptocurrency space to ‎consider establishing a self-regulatory body called the Virtual Commodity Association (VCA).‎

Discover credible partners and premium clients at China’s leading finance event!

The two backers of virtual currencies are seeking to bring the digital ‎asset class into the investing mainstream through an "SRO-like" entity — if they ‎win the approval of the US regulators‏.‏

In a blog post, the Winklevoss twins submitted a proposal to adopt self-regulatory ‎standards and industry-wide best practices to policing the new space amid ‎the authorities and government mulling further possible regulatory action.‎

Citing the success of SROs in the ‎United Sates, the brothers advocated for the creation of a private, independent organization according to the ‎following rules:

‎“The VCA: (i) will be a non-profit, independent regulatory organization that ‎does not operate any markets, (ii) will not be a trade association, (iii) will not ‎provide regulatory programs for security tokens or Security Token Security Token Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Read this Term platforms, ‎and (iv) will be in compliance with global standards and best practices for ‎SROs.”‎

In remarks posted on Gemini’s website, the twins, that participated in the history of Facebook, addressed the issue of the proliferation ‎of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and ICO campaigns. They described various oversight and regulatory ‎challenges including jurisdictional limitations that restrict CEA and CFTC authority over spot markets.‎

They wrote: “The purchase and sale of commodities in the spot/cash ‎markets has been historically exempt from the CEA and CFTC jurisdiction ‎because cash market transactions, unlike derivative contracts, are: (i) ‎traded for immediate delivery, (ii) settle “on the spot,” and (iii) are often ‎underpinned by a commercial purpose (i.e., a farmer selling grain). As a ‎result, these transactions are typically found to not be speculative in nature ‎or readily susceptible to manipulation.”‎

The proposed organization will require member firms to commit in writing to ‎operating their offerings in compliance with sound practices and “provide a ‎sanctions based accountability program to compel ongoing member ‎compliance.”‎

The VCA will be open for membership to virtual commodity platforms, over-‎the-counter trading firms, and other trading facilities acting as ‎counterparties.