Oct 08, 2018
Interest among big Wall Street firms in the cryptocurrency market is growing, but the nascent industry is still plagued by fraud and fettered by regulatory uncertainty. Joseph Moreno comments.
An excerpt from "'There's No Teeth': Recent Attempts by Crypto Exchanges to Regulate Themselves Won't Amount to Much, Legal Experts Say," Business Insider, October 8, 2018:
Joseph Moreno, a partner in Cadwalader's White Collar Defense and Investigations Group, said the idea of a self-regulatory organization — like the Gemini-led venture — may not be very effective.
"There's no teeth in an SRO if there's not a regulatory body behind it," he said. "It doesn't look to be very effective without statutory authority."
Moreno contrasted the self-regulating nature of the Virtual Commodity Association with that of the Financial Industry Regulatory Authority, another self-governing body which is authorized by Congress and supervised by the Securities and Exchange Commission.
"Presumably, [the VCA] will set standards and have the power to eject members if they violate them, but it will not have any governmental-like regulatory authority to bring enforcement actions or levy fines," he said.
Scott Cammarn, Mark Chorazak
Joseph Moreno, Jodi Avergun, Andrew Alin, Joshua Apfelroth, Keith Gerver