Fidelity Investments, Square Inc. and several other financial firms are forming a new trading group designed to influence the regulation of Bitcoin and other cryptocurrencies.
The Crypto Council for Innovation will advocate for political decision-makers, take up research projects and advocate the economic benefits of digital currencies and related technologies as the voice of the emerging industry. The crypto investor Paradigm and Coinbase Global Inc., which operate a cryptocurrency exchange, have also signed up as the first members of the group.
The council’s launch comes as the prices of many digital assets have risen, attracting new mainstream investors, as well as the banks and brokers who service them. Earlier this year, the total market value of Bitcoin, the most popular digital currency, hit $ 1 trillion for the first time.
However, the future of the market is far from clear. Proponents have argued that cryptocurrencies and the blockchain technology that supports them have the potential to create jobs and provide financial services to consumers everywhere with little or no cost. However, policymakers and regulators around the world will play a crucial role in shaping the way forward.
“Crypto is at a turning point,” said Fred Ehrsam, Paradigm co-founder and former Coinbase President. “It is in a very early stage and, much like the Internet (earlier), is very fragile at this stage.”