FinTank, a fintech company headquartered in Chicago, plans to launch a regional self-regulatory organization in the U.S.
“The organization will help regulate the global crypto industry”, said David Carman, former trader at Chicago Board Options Exchange.
Since most of the crypto world looks toward the US regulatory environment, such an organization could affect the crypto industry.
The SRO will be headed by David Carman and partner George Vukotich.
Crypto regulations still unclear
Even though the regulations of the Securities and Exchange Commission and the Commodity Futures Trade Commission have improved over the last three years, the crypto industry remains in limbo.
The SEC has been cracking down on various initial coin offerings, claiming that they are for selling unregistered securities.
However, as seen in a recent lawsuit, the SEC has not issued a ruling on the crypto assets that could be considered securities, including XRP.
“Both the SEC and CFTC have made it clear that an SRO is necessary to have a healthy regulatory environment.”
Carman described the organization as a national effort, not just a local endeavor in Chicago.
He outlined the SRO’s plan, saying:
“We will act with accountability, transparency and integrity to develop and promulgate the highest professional standards and best practices; provide awareness, education, training, and other resources to build human and technical capacity; and advocate for a regulatory environment that facilitates innovation and protects consumers, stakeholders and the broader public interest worldwide.”
Basically, the SRO can govern specific sectors or outlets alongside existing regulations.
Carman commented on the regulation, saying:
“There’s not enough of it, especially regarding spot exchanges overseas. Additionally, there’s confusion and a lack of clarity especially regarding the issuance of tokens.”
In a bid to combat manipulation in the crypto market, the SEC used to take tough actions against those violating its rules. The market regulator has accused the 67-year-old actor Steven Seagal of promoting an initial coin offering (ICO) run by Bitcoiin2Gen without unveiling the amounts he received.