The industry has come together to address and take significant actions directed towards the maturity and stabilization of the industry. With the launching of the Industry Standard for Market Making in Digital Assets, the CMIC (consisting of 51 participants) intends to work towards the development of best standards and practices for market making, which is pivotal for the operation of cryptocurrency exchanges.
Bridging the Integrity Gap Caused by Lack of Frameworks.
The new standard focuses on the active definition and approach of responsible verification principles for market making in the sphere of digital assets to fill the gaps in the United States standards. It provides action steps towards risk alleviation and enhancement of the transparency for the companies relying on the market-making facilities.
Major Elements: Setting Up A Foundation For Trust
The CMIC Industry Standard for Market Making in Digital Assets includes several elements to safeguard ethical conduct as responsible and good citizenship within an industry.
Conflict of Interest Governance: The framework describes how effective governance deals with disclosure and conflict of interest mitigation practices. These practices extend to shareholders, executives, and employees, which includes dealing with situations where firms act as both principal and agent within the same transaction.
Market Abuse Prevention: This approach helps companies develop effective market abuse prevention policies that go beyond traditional manipulative practices. These include not only traditional spoofing and wash trading but also other forms of manipulation that belong specially to cryptocurrency, such as oracle manipulation and social media sentiment manipulation.
Global Compliance Cross-Aligned: The standard aims at firm-specific designed protocol within the context of best firm-specific crafted industry practices, aligning them with global industry standards and preparing the firm for new and adaptive responsibilities in changing regulatory environments in a regulated marketplace.
A Unified Industry Voice: CMIC’s Growing Influence
Solidus Labs initiated CMIC in 2022, and it has quickly emerged as an advocate for responsible innovation within the crypto space. CMIC is composed of leading cryptocurrency exchanges, liquidity providers, brokerages, trade associations, custodians, and infrastructure providers. The endorsement of these industry stakeholders adds considerable support to the newly issued standard.
A History of Action: CMIC’s Ongoing Efforts
Before the CMIC launched the Market Making Standard, she sought to enhance integrity within cryptocurrency markets. This coalition has issued and published a seventeen-point Consumer Bill of Rights, a Commercial Market Integrity Code of Conduct and Pledge, and has founded the CMIC Academy to train practitioners. She has also interfaced with decision makers and submitted multiple industry letters advocating for sensible regulations to defend responsible policy-making to legislators.
Taming the Crypto Beast: Looking Forward While Regulating the Untamed
The CMIC Industry Standard for Market Making in Digital Assets is an important milestone towards improving the level of trust and stability in the cryptocurrency market. The coalition seeks to develop verifiable policies that reprimand unethical behavior, thus creating an orderly framework that boosts confidence among institutional and retail investors. The effectiveness of this endeavor relies on the universal embrace and implementation of the initiative, which will, in turn, determine the future of market making within the digital asset ecosystem.
