Financial firms have banded together to form a new trade group aimed at shaping the way cryptocurrencies are regulated, the WSJ reported.

  • The Crypto Council for Innovation will lobby policy makers, take up research, and represent the industry as its voice in championing the economic benefits of digital currencies and related technologies.
  • Initial members of the group include Paradigm, Coinbase Global Inc., Fidelity Investments, and Square Inc.
  • The council plans to appoint a board that would include representatives with each of the four initial members.
  • The launch comes as digital asset prices surged, drawing in new mainstream investors along with the banks and brokers that serve them. The total market of the most popular digital currency bitcoin breached $1 trillion earlier this year.
  • Advocates have argued that cryptocurrencies have the potential to create employment opportunities and expand financial services across the globe at little to no cost, but regulators will play a critical role in shaping the path forward.