From: Opening Statement of Brian Quintenz before the Technology Advisory Committee
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The current regulatory framework of virtual currencies is a patchwork of state and federal jurisdictions. As the markets for virtual currencies mature, the Commission, along with its fellow state, federal, and international regulators, should ensure a rational approach to regulatory oversight, not one based on fear or inexperience. Jurisdictional gaps should be identified and addressed. In conjunction with those efforts, and as I said at last week’s Yahoo Finance All Markets Summit, I think a self-regulatory organization, or SRO, for cryptocurrency exchanges could spur the development of standards around cybersecurity policies, data retention, protection of customer accounts, trading practices, and other issues. Self-regulation has a long history in derivatives markets. In the 19th century, futures exchanges took the initiative to develop formal rules and disciplinary procedures to enforce fair trade practices and curb manipulation before comprehensive federal regulation was enacted. It is worth exploring whether an SRO model could assist cryptocurrency exchanges establish and enforce standards that protect investors and deter fraud. I look forward to hearing from the Committee about the possibility of such an SRO.
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