Top US Cryptocurrency Industry Players Take up the Role of Market Sheriff

[Leonardo]

Ten large financial service and technology providers in the cryptocurrency space, including Mike Novogratz’s Galaxy Digital merchant bank, have formed an association to develop rules of conduct for the nascent and still mostly unregulated industry.

The members of the new entity, called the Association for Digital Asset Markets (ADAM), will become the first organization in the US to focus on creating standards for digital asset market participants in cooperation with regulatory bodies.

"ADAM will work with current and former regulators to provide rules for efficient trading, custody, clearing, and settlement of digital assets. Future guidelines will encourage professionalism and ethical conduct by all market participants; increase transparency by providing information to regulators and the public; and deter market manipulation," according to the press release published on Tuesday.

Duncan Niederauer, the former head of the New York Stock Exchange, will serve as an advisor for the Association. He believes that any market - and the digital asset market is no exception - needs a clear set of rules that will guide industry players and give them confidence, which is fundamental for proper market development and growth.

The Association seeks to earn the trust of financial regulators and ultimately create a safe environment for transactions with digital assets and foster financial innovations to the benefit of the global economy.

The founding members of the Association are Galaxy Digital, Genesis Global Trading, GSR, Hudson River Trading, Paxos, Symbiont, BitOoda Technologies, BTIG, Cumberland and XBTO. However, the organization plans to add new members in the future.

"Membership is open to organizations involved in, or that seek to become involved in, the markets for digital assets. Participating organizations include trading venues (sometimes referred to as “exchanges”), custodians, investors, asset managers, traders, liquidity providers, and brokers."

This is not the first attempt to raise standards for the cryptocurrency industry and bring in some discipline. Earlier this year,  a group of crypto exchanges led by Cameron and Tyler Winklevoss’s Gemini formed the Virtual Commodity Association with a similar aim.

On a global scale, self-regulatory bodies for digital assets market players also exist in Japan and the UK.

Source: https://cryptovest.com/news/top-us-cryptocurrency-industry-players-take-up-the-role-of-market-sheriff/