By Samuel Indyk
Investing.com – Cryptocurrency exchange Coinbase and digital payments company Square Inc (NYSE:SQ) have launched a new trade group to lobby policymakers and regulators on how digital assets should be regulated.
Founders of the new group, named the Crypto Council for Innovation (CCI), also include Fidelity Investments and crypto-focused investment firm Paradigm.
The news of the trade group, first reported by the Wall Street Journal, comes amid a surge in the price of cryptocurrencies with the total market cap exceeding $2tln for the first time earlier today.
The founders
According to the new trade group’s website, CCI comprises some of the leading names in crypto, including Coinbase, Square, Fidelity Digital Assets, and Paradigm.
Coinbase is the largest crypto exchange in the US by trading volume and has plans to go public later this month. In the latest filings with the SEC ahead of its debut, the company announced it had over 43mln users in over 100 different countries.
Payments company Square is also a well-known proponent of digital assets with the company holding Bitcoin on their balance sheet. Recently, the company’s CFO said there is a case for every company balance sheet to have Bitcoin on it.
Fidelity Digital Assets is Fidelity Investments’ cryptocurrency unit. The company provides custody and execution services in cryptocurrencies for institutional investors.
Paradigm is an investment firm focused on crypto assets and business.
The purpose
There are still mainstream doubts about the purpose of cryptocurrencies, but the group argues that benefits include a store of value, high speed and low-cost transactions, to create open applications that do not require trust in a centralised authority, and to take control of one’s online destiny.
According to its website, CCI exists to “demonstrate this transformational technology’s promise internationally to policymakers and regulators, and to communicate its benefits to the people of the world”.
Cryptocurrencies
Early on Monday, the cryptocurrency market capitalisation hit an all-time high above $2tln, with around 50% of that being Bitcoin. The world’s largest cryptocurrency has stayed above that key level for over a week and has traded in a relatively tight range below $60,000 as markets await the next catalyst for a move higher or lower.