Ten financial services and technology firms active in the cryptocurrency space have joined forces to launch the Association for Digital Asset Markets (ADAM) in order to establish a Code of Conduct for the emerging asset class in the United States.
Association for Digital Asset Markets Launched to Establish Code of Conduct in the United States
By working with current and former financial watchdogs, the association will seek to provide rules for efficient trading, custody, clearing, and settlement of digital assets, thus defining the standards for digital asset market participants. ADAM’s guidelines will focus on ethical behavior by firms within the industry, increased transparency with regulators and the public, and deterrence of market manipulation.
The code intends to complement the existing law and securities regulation in the U.S. in order to earn the trust of financial watchdogs and policymakers. Rules are fundamental in any market, said Duncan Niederauer, former Chief Executive Officer of NYSE and ADAM Advisory Board Member.
“Over 200 years ago, market leaders came together to draft rules that led to the creation of the New York Stock Exchange. The advent of digital assets requires a similar effort; one that will clarify existing rules and give both investors and regulators the confidence necessary to sustain this market.”
The Association for Digital Asset Markets (ADAM) was formed by digital asset advisory firm BitOda, institutional trading specialist BTIG, crypto liquidity provider Cumberland, cryptocurrency and blockchain merchant bank Galaxy Digital, OTC cryptocurrency dealer Genesis Global Trading, crypto liquidity solutions provider GSR, multi-asset quantitative trading firm Hudson River Trading, PAX and itBit creator Paxos, smart contracts platform Symbiont, and liquidity provider XBTO.
ADAM is set to draft a Code of Conduct on market integrity, risk management, know-your-customer, anti-money laundering, custody, record keeping, market manipulation, data protection, clearing and settlement, and research. The association will soon add new members and announce its executive team to be based in New York and Washington, D.C.
The organization is open to new members within the cryptocurrency space, including operators, investors, custodians, asset managers, liquidity providers, traders, and brokers.
ADAM includes a number of high-profile firms within the crypto space, such as Mike Novogratz’ Galaxy Digital. The venture capital fund of the digital assets merchant bank has recently led a Series B funding round of blockchain security company BitGo. In September, Novogratz said it would impossible for Bitcoin not to hit $10,000 by the end of the year.
Genesis Global Trading, also a member of ADAM, obtained a BitLicense from the state of New York in May 2018. Genesis was the fifth cryptocurrency exchange to be awarded with an authorization to operate in the New York state. In October 2018. Genesis chief executive Michael Moro also predicted that Bitcoin would reach the $10,000 level.
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