Several companies operating in the field of cryptocurrency and financial services have formed an organization to develop rules of conduct in the growing field of digital assets.
The group creation was announced today, November 27, and was named the Association for Digital Assets Market (or simply ADAM), and its participants were Galaxy Digital, Genesis Global Trading, GSR, Hudson River Trading, Paxos, Symbiont, BitOoda Technologies, BTIG, Cumberland and XBTO.
Together, these companies intend to develop voluntary rules of conduct in areas such as trading, storage, clearing and settlement related to digital assets. In addition, in the future, the association plans to "encourage professionalism and ethical conduct."
To do this, ADAM plans to work with regulators, and the ultimate goal of the association is to help develop laws and regulations, as well as to gain the confidence of financial watchdogs and politicians.
Although ADAM seems to be planning to become a self-regulating organization, according to its representative Seth London, however, before that it needs to gain the trust of the community and the watchdogs. The way ADAM plans to go reflects the way many other self-regulatory organizations were created.
In the comment to Coindesk he said that at the moment, ADAM includes a wide range of market participants, including trading platforms, asset managers, traders, liquidity providers, brokers, and companies that hold assets.
“Its members are all firms that are active in digital asset markets or seek to participate in those markets once rules are standardized,” he continued.
Soon, ADAM plans to announce its leaders and accept new members. In addition, the association is now engaged in setting up authoritative administration.
“In Q1 2019, ADAM intends to convene its members, advisors and regulatory experts to begin drafting the code of conduct. That will take several months. Once the code is adopted, ADAM will exist to evolve it as necessary and monitor compliance,” London said.
In August, several cryptocurrency exchanges teamed up with Gemini founders Cameron and Tyler Winklevoss to create a self-regulatory organization for the crypto industry. This proposal was announced back in March, and CFTC Commissioner Brian Quintenz also spoke in support of this self-regulating organization.
“I encourage Gemini (or any other market participant, advocacy group, platform, or firm) to be aggressive in promoting these qualities within any SRO construct,” he said back then.
Recently, another crypto association was created. The Global Stablecoin Association (GSA) plans to encourage cooperation between projects that issue stablecoins. Participants in specialized crypto projects, government representatives and experts from the big four accounting firms will join the association. The GSA pursues the mission of enlightening crypto enthusiasts. Its members will be actively involved in the regulation of the crypto sphere, and even create a lobbying body. The association will also help “to achieve mass adoption of cryptos in the real world economy”. GSA also plans to develop a mechanism for self-regulating the industry and a rating system.
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