The Gemini Crypto Exchange has decided to host a working group in September 2018 to discuss the formation of a self-regulatory organization (SRO) to oversee the growing U.S. crypto trading marketplaces. The establishment of an SRO is a logical step towards the maturation of the crypto market.

According to Business Wire, Gemini, Bitstamp, Bittrex, and bitFlyer USA will initially make up the Virtual Commodity Association (VCA). Representatives from these four exchanges will meet in September and discuss the following:

1. Guidelines for membership in the VCA.

2. Guidelines for best practices and rules-based marketplaces that will promote fairness, transparency, risk management, and liquidity.

3. Guidelines for best practices that will address Member conflicts of interest, client communications, client disclosures, and record keeping.

4. Staffing the VCA, to include an Executive Director, among others, and composition of the Board of Directors.

The new VCA members believe that the formation of the VCA will be very beneficial to the industry. Nejc Kodrič, the CEO of Bitstamp said “We’re proud to be a part of the Virtual Commodity Association as a way to add another element of protection for consumers.” Yusaf Hussain, Gemini Trust Company LLC’s Head of Risk is also optimistic, saying “This is the first of many steps in policing the digital asset markets and answering the call of regulators.”

The establishment of the VCA follows the recent denial of the Winklevoss Twins (founders of Gemini) Bitcoin ETF attempt. By establishing this SRO, it is likely that exchanges are signaling that the market is mature enough for exchange-traded products (ETPs). The Guidelines established by the VCA could stop regulators from getting too involved in the crypto marketplace.

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