Major Crypto Firms and Organizations Form Alliance Aiming to Promote 'Market Integrity'

Several cryptocurrency exchanges and advocacy groups from different countries have joined forces to form a coalition aimed at combating market manipulation.

In a statement on Monday, market monitoring firm Solidus Labs and exchanges Bitstamp, Coinbase, BitMEX and CrossTower said they would form the Crypto Market Integrity Coalition (CMIC), calling on all other companies involved in the crypto space to follow suit. Members must commit to encouraging “a fair digital asset market that combats market abuse and manipulation and promotes public and regulator confidence in cryptocurrencies,” the CMIC said.

The group's 17 founding members include the Chamber of Digital Commerce, a U.S. crypto advocacy group, CryptoUK, a U.K. self-regulatory trade association, and global digital finance, an international think tank. Additionally, crypto data provider CryptoCompare, Anchorage Digital, the first crypto firm to receive a license from the U.S. national banking regulator, and Circle, the company behind the USDC stablecoin, have also joined the alliance.

CMIC’s commitments include “maintaining a fair and orderly digital asset market and preventing market abuse.” The group said it plans to eventually share its own research on cryptocurrencies and establish a dialogue with regulators to consider developing data-sharing and shared monitoring frameworks .

Dante Disparte, Circle's chief strategy officer and head of global policy, said: "Coordinating a broad global approach to competition in the digital asset and digital currency space could improve U.S. competitiveness, security, and lower the fundamental cost of basic financial access. CMIC's commitment will bring together the industry's leading players to advance standards of market integrity."

According to the CMIC website, the pledge requires members to agree to the following:

“Regardless of regulatory requirements, market activity should be continually reviewed and monitored on a reasonable basis to detect and eliminate market manipulation and unfair market abuse. Clearly fraudulent and manipulative practices are unlawful and we are committed to doing our best Work hard to prevent these activities."

Crypto companies and industry leaders have formed other groups aimed at addressing challenges between mainstream adoption and regulators. In September 2020, Square (now Block) launched a consortium aimed at pooling cryptocurrency and blockchain-related patents "to defend against patent attackers and malicious attackers." In February 2021, Chainlink, Aave, Messari, etc. launched the GoodFi Alliance, focusing on promoting education and research on decentralized finance.

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