The Winklevoss twins, who run the Gemini exchange for trading Bitcoin (EXANTE: Bitcoin) and Ether (ETH/USD), have submitted a proposal to create the Virtual Commodity Association, a self-regulatory organization (SRO) meant to police digital-currency markets and custodians, Bloomberg reported.
“The promise of virtual commodities and their impact on the future will be profound - but individuals and institutions need to feel safe and secure when transacting,” the brothers wrote in a statement.
The twins contended that the creation of an independent regulatory body is the "next logical step in the maturation of this market."
The proposal by Cameron and Tyler Winklevoss was welcomed by US Commodity Futures Trading Commission (CFTC) member Brian Quintenz.
Quintenz congratulated the Winklevoss brothers for "their energetic leadership and thoughtful approach" to the idea of a regulatory body.
“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 in a statement.
The Virtual Commodity Association would be funded by membership fees and would be open to trading venues that cater to U.S. investors. Members would be required to adhere to certain rules related to fiscal responsibility, cybersecurity and information sharing, and would face sanctions if they didn’t comply.