Ten financial and tech companies have come together to establish an Association for Digital Asset Markets or ‘ADAM.’ The groups aim is to create a “code of conduct” for the cryptocurrency sector.
ADAM is a Good Boy
The body is made up of well-known crypto names. These include Galaxy Digital, BTIG, Paxos[1]—which recently launched the PAX stablecoin[2]—and crypto liquidity solutions provider GSR.
Looking to get on the good side of regulators, and no doubt put more of a definite shape on the cryptocurrency market, the group will work with regulators to seek “comprehensive standards” for market participants.
These standards will apply to all areas of the industry from trading, custody, clearing, and settlement and will be the framework for “ethical conduct” and “professionalism.”
If successful, these standards should deter market manipulation and improve transparency for both regulatory authorities, policymakers, and the public.
Code of Conduct
According to Duncan Niederauer, former CEO of the New York Stock Exchange and ADAM Advisory Board Member, rules are vital for the success of any market:
“Rules are fundamental to the development of any market. 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.”
>> NASDAQ to Launch Bitcoin Futures in 2019[3]
Important questions remain about the specifics; who exactly will be setting the rules and who exactly will be enforcing them?
Made to complement existing laws[4] and regulations,
