Two Coinbase and Ripple officials are leading a campaign for smart crypto legislation and accountability that would drive growth and boost blockchain technology.
The co-chairs of the Business Integrity Working Group ask regulators to understand how they can push the cryptocurrency business forward.
Rachel Nelson, Coinbase’s senior managing director, and Breanne Madigan, Ripple’s head of global investment markets, wrote in a joint statement:
“To improve market integrity and provide consumers the confidence they deserve, Congress may need to enact legislation to support the orderly and secure functioning of crypto markets.”
“Such legislation could expand the Commodity Futures Trading Commission’s (CFTC) authority to include the regulation and oversight of digital commodity exchange markets.”
The Working Group, launched officially on January 23, highlighted the hurdles facing the exchanges.
“Consumers and cryptocurrency exchanges deserve a clear regulatory framework, the establishment of which would ultimately enhance market integrity and drive consumer adoption of cryptocurrencies.”
The co-chairs pointed out that new exchanges face byzantine pressures, while existing exchanges fight against regulatory measures for approval. However, regulatory frameworks will reinforce the legitimacy of the market and facilitate the acceptance of cryptocurrencies by customers.
The Blockchain Association earlier stated that the crypto industry is still largely unregulated in the US.
As a result, market manipulation and false data are still existent, preventing digital assets from gaining legitimacy.
Last March, Bitwise, a cryptocurrency management company, stated that 95 percent of the reported Bitcoin trading volume through cryptocurrency exchanges was incorrect. It added that the reported volume of $6 billion is closer to just $273 million.
Cryptolydian earlier reported that online consumers should actively adopt the blockchain technology, especially as the ecommerce market is expected to exceed $740 billion in 2023. However, such consumers are worried about the unclear market regulations and requirements.