Fidelity Investments, Coinbase, and other U.S-based businesses have created a cryptocurrency trade group to shape the way Bitcoin and other cryptocurrencies are regulated.
The group, called the Crypto Council For Innovation, aims to ensure that policymakers understand the importance of cryptocurrency innovation to promote favorable industry regulations.
New Cryptocurrency Trade Group Unveiled
The council convened by crypto investor Paradigm also has payment solution provider Square as a member organization.
As stated in the announcement, the CCI would also educate the public on cryptocurrencies, appoint a board with representatives from each of its four initial members, and implement an executive team.
The formation of the trade group comes when prices of many digital assets have surged, drawing in new mainstream and institutional investors. Last month, the total market value of Bitcoin was reported to have climbed to $1 trillion for the first time.
Gus Coldebella, chief policy officer at Paradigm, commented that the group would be required to share insights and analysis about crypto while correcting the misperceptions surrounding it. The aim, Coldebella said, is to educate leaders about crypto to help empower them to participate in the crypto ecosystem for the benefit of their citizens, communities, and families.
Speaking on the CCI launch, Fidelity’s spokesperson said the council’s aims align with Fidelity’s plans to strengthen the digital assets ecosystem.
“Initiatives like the Crypto Council for Innovation allow us to work with other leaders in the ecosystem to create sustainable solutions that advance our industry and enable broader adoption,” added the spokesperson.
Founded in 2018, the Fidelity Digital Assets focuses on providing custody and trade execution services for institutional investors interested in crypto assets. Last month the firm filed for regulatory approval to launch an exchange-traded fund that tracks the price of Bitcoin.
A Win For The Crypto Industry
The undeniable growing interest in crypto assets can be seen in the steps of several financial firms who have either invested or utilized them in recent times.
The council’s formation is one of the latest steps that show that the industry is growing. The announcement can be viewed as a win for the crypto industry, as the four companies involved are all major players with billions of dollars of capital backing them.
While Paradigm is a leading crypto-focused investment firm based in San Francisco, Coinbase is one of the major crypto exchanges with a net income of approximately $730 million to $800 million. With 56 million verified users, the exchange is also on its way to a direct listing on the Nasdaq Exchange slated for April 14.
Square is also a major player on the Bitcoin front. The company, founded by Twitter’s CEO Jack Dorsey, has invested $170 million in Bitcoin and has over 350 million active consumer accounts.