Chamber of Digital Commerce Proposes Regulations for Cryptocurrency Sector
The Chamber of Digital Commerce (CDC), an American advocacy group released a collaborative research effort on July 30, 2018, containing several proposed guidelines to ensure a “responsible growth” of the burgeoning cryptocurrency industry.
CDC’s Digital Token Push
As published in an official press release, the report titled “Understanding Digital Tokens: Market Overviews & Guidelines for Policymakers & Practitioners,” contains three distinct sections for the proposed regulation of cryptocurrencies.
The sections are Principles for token issuers and cryptocurrency firms which do not identify as a “security” token, economic benefits and implications of the global cryptocurrency market, and digital asset trading markets in the U.K., U.S., Canada, Australia, and Gibraltar.
The first report of a multi-part series is centered on “utility tokens,” or cryptocurrencies which exist to serve a functional protocol purpose instead of being used as a payment mode, such as 0x, VeChain, and EOS.
Former Securities and Exchange Commision commissioner and CEO Patomak Global Partners Paul Atkins noted the guidelines are an essential prerequisite for creating an optimal regulatory environment for the cryptocurrency market, adding that the proposal,
“strikes the right balance between protecting investors while allowing for innovation in this new technological frontier.”
Atkins stated in the release:
“We think it is important to explain the unique attributes of blockchain-based digital assets, which are not all strictly investment based, and provide guidance to consumers, regulators and the industry.”
“Meaningful Industry Dialogue”
Founded in 2014 by Perianne Boeing, the CDC propagates political lobbying, advocacy, and public relations for the broader cryptocurrency sector. The body was classified as a non-profit entity by U.S. Internal Revenue Service in the year of launch.
For the uninitiated, the Token Alliance now consists of over 350 international members from the blockchain and cryptocurrency industry, including legal and economic academics.
As stated in the release, the CDC believes an evolution of the alliance’s guidelines will occur soon after new regulations are developed.
Dr. James Newsome, former Chairman of the CFTC and Co-Chair of the Token Alliance, noted:
“The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation and jobs.”
Newsome added the latter points help in augmenting a nation’s economy, which could attract policymakers to engage in “meaningful industry dialogue.”
The release follows ICO regulation proposals by South Korea, Japan, and Lithuania, who all seek to create a favorable business environment for token issuers if strict KYC/AML checks are in place.