US bitcoin exchange Gemini proposes Virtual Commodity Association

The U.S. registered bitcoin and ether exchange Gemini today put forth proposals for a new self-regulatory organization which would be called the Virtual Commodity Association (VCA), for the United States virtual currency industry, specifically virtual commodity exchange platforms and custodians.

Founders of Gemini, Tyler, and Cameron Winklevoss noted, “we believe adding an additional layer of oversight on virtual commodity cash markets, in the form of self-regulation, is important for consumer protection and to ensure the integrity of these markets.”

They envision the VCA to be a non-profit, independent regulatory organization that does not operate any markets, will not be a trade association, will not provide regulatory programs for security tokens or security token platforms, and will be in compliance with global standards and best practices for SROs.

Below is their outlined suggestions.

PURPOSE
STRUCTURE – MEMBERSHIP AND GOVERNANCE
SOUND PRACTICES – ANNUAL CERTIFICATION BY MEMBERS
PRIMARY FUNCTION OF THE VCA AND ITS BOARD
Founders of Gemini, Cameron and Tyler Winklevoss

The Winklevoss twins concluded their declaration stating:

“The SRO approach has historically worked to protect and police various markets. For example, the National Futures Association is an SRO for the U.S. derivatives industry and is a model for how the VCA can work together with the CFTC to provide additional oversight to virtual commodity cash markets. The promise of virtual commodities and their impact on the future will be profound — but individuals and institutions need to feel safe and secure when transacting.”

“We believe a thoughtful SRO framework that provides a virtual commodity regulatory program for the virtual commodity industry is the next logical step in the maturation of this market. We look forward to engaging with industry leaders, participants, regulators, and legislators on this proposal.”