Guiding Principles
We are often asked how the Global DCA is able to bring together and achieve agreement amongst such a broad-based and diverse membership base when crafting standards, designing educational offerings and – in particular – when developing policy positions. The answer is that we start from a point of ‘Guiding Principles’ which help bring diverse viewpoints around the table to synthesize an organizational perspective. Our five ‘Guiding Principles’ are outlined below:
The Global DCA believes strongly in the concept of balanced regulation – regulation which balances the need for innovation in the industry with the need to protect consumers, stakeholders and the general public.
We believe that blockchain and digital assets are a transformative technology that will fundamentally shift the global financial sector. Digital assets are not just another fintech or technology that we can view through the narrow scope of financial sector regulation. But given their transformative nature and the evolution of this space must be viewed through the following four lenses:
-
National Security
-
Economic Growth / Job Creation
-
Financial Sector Evolution / Global Positioning in the Digital Era
-
Sustainability – Environmental as well as financial inclusion, access to finance and other social outcomes
By taking a holistic approach to understanding digital assets, we believe national jurisdictions may most appropriately devise policies, structure legal and regulatory frameworks and properly position themselves in the global digital economy.
So what is the correct legal and regulatory approach to digital assets? This will vary by jurisdiction, but generally, the Global DCA believes in a right-sized approach to government regulation complemented by a credible and robust system of self-regulation. This combination of regulation + self-regulation will allow greater overall regulatory coverage for the industry and individual jurisdictions and will help to strike the balance between the need for innovation and consumer protection.
This industry, more than any in recent memory is best suited to self-regulation as:
- RAPID EVOLUTION – We are dealing with a rapidly evolving industry which requires a swift and nimble approach to the regulation.
-
HIGHLY TECHNICAL – This industry is highly technical and requires significant expertise that is even difficult to find / maintain / retain in the private sector – let alone the public sector.
-
NEED FOR PROXIMITY – Further, the combination of rapid evolution and required expertise to effectively regulate necessitates a high degree of proximity – such as that found in self-regulatory regimes – to the digital asset industry. Given the swiftness with which innovation is being undertaken in this space – an expert removed from the industry’s knowledge could easily become obsolete in a short period of time.
-
GLOBAL – Finally, the construct of the digital asset industry very naturally transcends borders. It is truly borderless and global. Given the need for cross-border, global harmonization and engagement to regulate – there is a need for a self-regulatory entity which can more easily follow the flow of transactions.
As such, a self-regulatory approach makes the most sense in terms of providing effective and efficient regulatory coverage for this industry.
Global DCA Policy Positions
Leveraging our ‘Guiding Principles,’ the Global DCA undertakes member and partner association roundtable seminars, engages with stakeholders and considers the public interest in crafting its policy positions. Global DCA policy positions, comment letters, statements and responses are provided below:
Global Digital Asset and Cryptocurrency Association Organizes Steering Committee To Highlight Core Principles for Self-Regulation of Digital Assets
The Global Digital Asset and Cryptocurrency Association, the preeminent self-regulatory association for the digital asset and cryptocurrency industry, has organized a Steering Committee to elaborate on Core Principles for the self-regulation of customer-facing digital asset businesses. The Global DCA is calling on the industry to adopt such principles to address the causes of recent crypto business failures and to restore the industry’s tarnished credibility. The Global DCA Core Principles Steering Committee announces that the following regulatory and industry leaders have agreed to serve in the public interest as members of the Steering Committee: J. Christopher Giancarlo, Senior Counsel and Co-headof the Digital Works Practice, Willkie Farr & Gallagher / Former Chairman of the U.S. Commodity Futures Trading Commission (CFTC) Maggie Sklar, Partner, Davis Wright Tremaine / Former Senior Policy Advisor and the Director of International Engagement, Financial Markets Group, at the Federal Reserve Bank of Chicago / Former Senior Counsel at the Commodity Futures Trading Commission / Chairwoman of the Global DCA Public Policy & Regulatory Committee Renata Szkoda, Chief Financial Officer, INX / Chairwoman Global DCA Dawn Stump, Former Commissioner, U.S. Commodity Futures Trading Commission (CFTC) Carla Carriveau, Strategic Advisor/Director for crypto, fintech, and regtech startups, Former Senior Counsel and Executive Staff to Chair Mary Jo White, U.S. Securities and Exchange Commission Jamila Piracci, Founder, Roos Innovations / Former program lead overseeing the National Futures Association (NFA) regulatory program for swap dealers under the Dodd-Frank Act (2011 to 2019) / Former Attorney, Federal Reserve Bank of New York Amit Sharma, Founder & CEO, FinClusive / Former Head...
Global DCA’s Response to Request for Consultation on FSB’s Proposed Framework for the International Regulation of Crypto-Asset Activities
The Global Digital Asset & Cryptocurrency Association welcomes the opportunity to comment on the Financial Stability Board’s proposed framework for the international regulation of crypto-asset activities. GDCA applauds the process undertaken by the FSB to solicit public engagement on this important topic, and welcomes the opportunity to be part of the ongoing dialogue. When the FSB published the framework on October 11, 2022, it cited market events in the earlier part of the year that had exposed “a number of structural vulnerabilities” in crypto-asset markets and related businesses. Indeed, events like the collapse of the Terra/Luna project, the fall of Three Arrows Capital, and other events highlighted the need for significant standards setting, professionalization, regulation, and reform across the digital asset space. In light of this recent turmoil, where does GDCA believe the industry should go from here? Please click below to read the full response. CLICK HERE for the Full Response
An Open Letter to the Digital Assets Industry From the Members of the Global DCA
Crypto Association Calls for Urgent Industry Action - MarketScale From May 7th through November 11th, we have watched with dismay and horror as firms, once thought of as digital asset pioneers and leaders, have descended into catastrophic collapse. Luna, BlockFi, Celsius, Voyager, Three Arrows, FTX. In their wake, millions of customers are left with worthless claims. Many have had their savings wiped out. Still viable businesses are left teetering. More layoffs are announced daily. Those of us still standing, who believe in the potential of digital assets and have been playing by the rules, are angry at the recklessness, the ignorance and the greed that led to these collapses. No doubt all of us in the industry are processing these events and are devastated. The Global DCA believes that this dark moment presents an enormous opportunity for firms to come together and agree on a certain set of fundamental core principles. Principles that establish business practices that at their core seek to avoid, or at least mitigate, the occurrence of business failures that impact customers and the financial market at large. Interested firms can get in touch with us via emailing info@global-dca.org Please click below to read the full response. CLICK HERE for the Full Response
Down Range from Terra Luna: Stablecoin Strength Remains Unabated
Following the TerraUSD (UST) collapse and related events, the Global Digital Asset and Cryptocurrency Association (Global DCA) in collaboration with Lisa Weingarten Richards and Maggie Sklar from Davis Wright Tremaine (DWT) published the report “Beyond Terra: An Assessment of Stablecoin Benefits and Policy” (“Beyond Terra”). The report received positive support from many companies, thought leaders, and policymakers. It was also selected as a featured paper for this year’s DC Fintech Week, which showcases cutting-edge thought leadership and research from fintech academics, innovators, and others. On the other hand, the report was also subject to criticism from stablecoin skeptics, and may make points that are not in line with the stablecoin sections in the Financial Stability Oversight Council’s (FSOC) recent report: “Digital Asset Financial Stability Risks and Regulation.” This paper is a response to the critiques of the original publication, addresses some of the stablecoin rhetoric we find problematic in the FSOC report, and brings our information about true stablecoins up to date. Please click below to read the full response. CLICK HERE for the Full Response
Defining Global DCA and Self-Regulation
Click the video above to watch Global DCA's SRO Framework Roundtable (I) Design by 360 hre Click the video above to watch Global DCA's SRO Framework Roundtable (II) which includes group Q&A and full discussion. To enhance consumer and investor protection and facilitate innovation and industry development, Global DCA has launched an SRO Framework Project which will further explore and refine the organization’s nature and advancement of self-regulation. This exhaustive research, industry dialogue, and broader consultation is a necessary component of building governance institutions as governance institutions must not only reflect financial sector realities, but the broader economic, political, and social context of a given jurisdiction. Please click below to learn more. CLICK HERE TO LEARN MORE CLICK HERE TO DOWNLOAD THE POWERPOINT
