- Senior Director at Coinbase, Rachel Nelson and at Ripple, Breanne Madigan will be leading the team on improving the clarity and fairness around cryptocurrencies and their markets.
- Non-uniform regulations also result in market manipulation and inflation, stopping digital assets from reaching wider adoption.
A new working group for Market Integrity has been launched by the Blockchain Association of the United States to increase the transparency and awareness over cryptocurrencies, and it’s related regulations.
The group is to be co-chaired by executives from large cryptocurrency
institutions, Coinbase and Ripple. Senior Director and Associate General Counsel – Regulatory at Coinbase, Rachel Nelson and head of Global Institutional Market at Ripple, Breanne Madigan will be leading the team on improving the clarity and fairness around cryptocurrencies and their markets.
There have already been a large number of concerns over the legitimacy and integrity of cryptocurrency markets, and this has prevented the digital assets from reaching full consumer and institutional adoption. There have also been a lot of doubts and regulatory questions surrounding the digital assets, and more awareness and transparency of market integrity is required.
As per the Blockchain Association of the United States, it is improving market integrity could involve the Congress legislating the “orderly and secure functioning of crypto markets” by expanding the Commodity Futures Trading Commission’s (CTFC) oversight on the digital assets exchange markets and its regulation.
There are significant barriers to the entry of new exchanges into the crypto markets due to unstructured and unique regulatory frameworks that each state in the United States have proposed.
This makes it difficult not only for the entry of new exchanges but also for the compliance divisions of existing transactions and prevents a general, uniform structure to digital asset regulation.
This also prevents proper consumer knowledge over the regulatory compliances that their exchange of choice pertains to which can harm the security of the consumer’s assets.
Non-uniform regulations also result in market manipulation and inflation, stopping digital assets from reaching wider adoption. For example, a Chanalysis study pointed out that for every 6 Bitcoin that traded, only one would receive on the blockchain.
This meant that the rest of the money was being misrepresented as fake trade volume by exchanges. Due to the lack of regulatory insight, the transactions were able to get away with such behavior.
Therefore, the market integrity working group of the Blockchain Association of the United States will task to provide a clear regulatory framework, enhance market integrity and promote the more mainstream adoption of cryptocurrencies.