The Winklevoss twins are desperate to take the crypto world by storm, but have been thwarted a number of times by the regulatory bodies. The US Securities and Exchange Commission (SEC) has denied the twins a Bitcoin ETF twice in as many years, with the crypto markets reacting badly to the news. This time around, the twins have teamed up with Bittrex, bitFlyer USA, and Bitstamp to create a self-regulatory group. They have decided to call the committee the “Virtual Commodity Association Working Group” (VCAWG) and it will hold its first meeting in September.
Interestingly, in September the SEC will announce its decision on two Bitcoin ETFs. Whether the first meeting has been designed to coincide with these events or not has yet to be revealed. However, if the news from the SEC is negative, some positive news from VCAWG could help shore up crypto markets.
Not the First Self-Regulatory Group
In the traditional stock exchange space, there are several similar groups that have gone on to establish a number of trading platforms. These groups get together and create industry standards to ensure that safer and more standardized processes are put in place. It is these regulations that have shaped the financial industry into becoming the behemoth it is today. In the crypto world, something similar is beginning to happen.
In Japan, 16 regulated exchanges came together to create the Japan Cryptocurrency Exchange Association (JCEA). This group is responsible for the self-regulation of all crypto exchanges in Japan, and the VCAWG seeks to accomplish the same result in America. However, Coinbase is one of the largest crypto exchanges in America, and not seeing it as part of the group comes as quite a surprise.
Winklevoss Twins Pushing for Crypto Dominance
Ever since their debacle over Facebook with Mark Zuckerberg, the Winklevoss twins are determined to finally become pioneers and leaders of an industry. This has led them to create the Gemini exchange and acquire a number of crypto related patents. Rumors are beginning to circulate that Facebook is working on something blockchain and crypto related, with this is forcing the twins to get their fingers into as many pies as possible. While the social media giant hasn’t confirmed anything or teased any products, they have been heavily hiring people with crypto and blockchain related experience.
Is Coinbase Going it Alone?
Coinbase didn’t join the group and has so far yet to comment on the move. Over the past few months, the giant crypto exchange has been launching new features almost every week. This could imply that it is looking to get as far ahead of the curve as possible and prove to the world that it is better than its competitors, who are wasting time creating groups such as the VCAWG. While they are focusing on groups, Coinbase is focusing on improving its product, making it the stand out choice for crypto investors.
While the VCAWG has yet to meet and announce its intentions, it is certainly a warm welcome to the crypto community. With more regulation comes more security and safety for investors, which is paramount to the survival of the crypto community. Popular exchanges are being hacked left, right, and center, but more encompassing regulation could help end this spate of hackings. Hopefully the VCAWG will make the crypto exchange space safer and more welcoming given time
