Crypto firms, convened by risk monitoring software firm Solidus Labs, are establishing a coalition to combat market manipulation with an effort to win for trust in the mass nascent digital asset industry, according to Reuters.
Participating crypto companies include Coinbase, Circle, Anchorage Digital and Huobi. They will sign the “Market Integrity” pledge, acknowledging the potential for fraud in the cryptocurrency space and the industry’s need to protect investors.
Other founding members include CrossTower, BitMex, GSR, Bitstamp, Elwood, CryptoCompare, Securrency, MV Index Solutions, Digital Chamber of Commerce, Global Digital Finance and CryptoUK.
Kathy Kraninger, Vice President of Regulatory Affairs said:
“It really is about recognizing that you need entities that are focused on a fair and orderly system here, and really trying to prevent the abuses that can happen if you’re not paying attention,”
The SEC, in January, has earlier rejected the Wise Origin spot BTC ETF application from Fidelity Investments, a solid complement to its previous stance that it is not yet ready to have a functional Bitcoin ETF trading on its public exchanges, and will address the potential for market manipulation is also included.
The SEC said the ETF did not meet standards designed to prevent fraudulent and manipulative practices.
While the coalition was formed to act against potential fraud in the crypto space, it remains unclear exactly how the decentralized finance industry will curb bad actors.
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