A group of major cryptocurrency firms including Coinbase, Circle, Anchorage Digital, and Huobi Global, are forming a new Coalition aimed at cracking down on market manipulation in an effort to instill trust in the burgeoning digital asset industry. The Crypto Market Integrity Coalition, which was convened by risk-monitoring software company Solidus Labs.
It is also urging digital currency companies to sign a “market integrity” pledge that acknowledges the potential for fraud in the cryptocurrency space and the need for the industry to protect investors. The new alliance and pledge comes as regulators remain concerned the new market is safe for investors, despite its surge in popularity. The Securities and Exchange Commission has cited the potential for market manipulation as one of the primary reasons for rejecting several applications for spot bitcoin exchange-traded funds.
While this new pledge is a major acknowledgment of the potential for fraud within the crypto space, it remains unclear how exactly the decentralized finance industry can curb bad actors. The other founding members of the Coalition are CrossTower, BitMex, GSR, Bitstamp, Elwood, CryptoCompare, Securrency, MV Index Solutions, the Chamber of Digital Commerce, Global Digital Finance, and CryptoUK.