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:
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 DCA Response – US SEC Proposed Rule “Amendments to Exchange Act Rule 3b-16 Regarding Definition of an “Exchange”Renata Szkoda
Through this response to the US SEC "Global DCA Response - US SEC Proposed Rule "Amendments to Exchange Act Rule 3b-16 Regarding Definition of an "Exchange", the Global DCA presented the following arguments... (more…)
Global DCA Applauds ESMA Efforts to Support Distributed Ledger Technology (DLT) in European Financial MarketsRenata Szkoda
Through this response, the Global DCA applauded the European Union's efforts to enable and support the application of Distributed Ledger Technology (DLT) to financial markets. We believe that DLT has the potential to significantly impact innovation and competition in financial markets. The European Securities and Markets Authority (ESMA) is absolutely correct in recognizing the potential that DLT has to improve securities settlements. In many ways, settlements illustrate a perfect use case for DLT and highlight the many benefits that may accrue to the European securities markets, financial sector, and economy. (more…)
The Global Digital Asset and Cryptocurrency Association (Global DCA) is pleased that the Biden-Harris Administration has drawn needed attention to the importance of a stable, consistent, and workable regulatory framework with today's Executive Order on digital assets. We appreciate the Administration's acknowledgment of the benefits that digital assets can provide for everyone, including market participants and those outside the financial system like the unbanked and underbanked. As the Administration carries out the provisions of the Order, we are hopeful that all due care will be taken to ensure that the United States can maintain its position at the head of innovation in this critical new industry, while protecting consumers and the economy. (more…)
The Global Digital Asset & Cryptocurrency Association welcomes and fully supports the Stablecoin Innovation and Protection Act of 2022 proposed by Congressman Gottheimer. By establishing a regulatory framework for a “qualified stable coin” and a “qualified stable coin issuer,” the proposed legislation fosters responsible innovation while establishing a foundation for public trust and consumer protection for private stable coin offerings. (more…)
Global DCA Recommends “FinCEN should use this moment as an opportunity to re-imagine the BSA/AML framework in light of new and emerging technologies”Renata Szkoda
On Monday February 14th, the Global Digital Asset & Cryptocurrency Association welcomed the opportunity to respond to FinCEN’s request for information to solicit comment on ways to streamline, modernize, and update the anti-money laundering and countering the financing of terrorism (AML/CFT) regime of the United States. The Global DCA applauded FinCEN’s purpose in requesting this feedback from the industry and recommended that FinCEN should use this moment as an opportunity to re-imagine the BSA/AML framework in light of new and emerging technologies. (more…)