A group of cryptocurrency companies, including stablecoin provider Circle, Anchorage Digital, and crypto exchange Huobi Global has launched a coalition to crack down on crypto market manipulation, per Reuters.
The coalition, dubbed the “Crypto Market Integrity Coalition,” is calling for crypto companies to sign a pledge of “market integrity.”
The point of this pledge is to recognize the potential for fraud in the crypto market while signaling the need to protect consumers.
“It is really 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,” said Kathy Kraninger, vice president of regulatory affairs at Solidus Labs.
Risk-monitoring company Solidus Labs convened the coalition.
“Integrity is paramount to the progress and ability of our industry to continue innovating and building an infrastructure that delivers on the promise of access to financial resources for all,” said Dante Disparte, chief strategy officer and head of global policy at Circle.
The coalition comes at a time when the crypto industry has been embroiled in various regulatory controversies.
The crypto industry has been facing calls for stricter rules from regulators and politicians worldwide.
In the United States, chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has routinely said the crypto industry needs tougher consumer protection laws.
He warned that the decentralized finance (DeFi) industry could be rife with unregistered securities. In October last year, he said DeFi would “end poorly” without consumer protection laws put in place.
Elsewhere in the United Kingdom, the Financial Conduct Authority (FCA) has frequently warned against the industry, issuing an industry-wide consumer warning advising consumers to be prepared to “lose all their money” should they invest in cryptocurrencies.
Specific companies have raised the ire of international regulators, too.
Earlier this year, an investigation also found that CEO Changpeng Zhao ignored internal warnings about the exchange’s regulatory failings.
However, it remains to be seen how this newly-formed coalition can truly have an impact.