Coinbase, Kraken, and over 40 other cryptocurrency firms have united to establish the Transparency Alliance, which aims to implement standardized disclosure practices for tokens, akin to those in traditional stock markets.

Key Details:

  • This initiative, spearheaded by Blockworks, promotes a Token Transparency Framework for consistent disclosures in the token market.
  • The framework requires both initial and ongoing filings, detailing critical aspects such as insider allocations, agreements with market makers, and terms of listing.
  • Recognized by U.S. regulators, the framework seeks to enhance investor comprehension without passing judgment on the viability of specific tokens.

The Transparency Alliance, which includes prominent exchanges and service providers like Binance.US and MEXC, was launched to address the lack of clarity that investors face in digital asset markets.

Jason Yanowitz, co-founder of Blockworks, remarked, “When people invest in stocks, they know what they own, but this is not the case with tokens.” He emphasized that essential information is often fragmented or missing.

Since the Token Transparency Framework's introduction in June 2025, 44 protocols, including Morpho and dYdX, have adhered to its guidelines.

The framework incorporates two types of filings: an initial disclosure for new tokens, similar to an S-1 registration, and a continuously updated filing for established protocols. These filings encompass details like organizational structure, insider token distributions, agreements with market makers, listing conditions, and buyback policies.

Yanowitz stated, “The exchanges understand that the crypto sector is transitioning into an institutional phase, necessitating a cohesive disclosure system to facilitate substantial capital movement.”

Blockworks has also engaged with officials from the Securities and Exchange Commission and the Commodity Futures Trading Commission regarding this framework. “Regulators are clearly advocating for improved classifications, transparency, and market integrity in the crypto space,” he noted.

This framework is available at no cost to issuers and platforms, with Blockworks aiming to generate revenue through data, research, and software products associated with the ecosystem.

While the initiative does not intend to regulate speculative investments, Yanowitz pointed out that the crypto culture will still include memecoins and experimental tokens, but investors should be informed about their purchases. “Our role isn’t to label tokens as ‘good’ or ‘bad,’” he explained. “Some tokens will comply with disclosure requirements, while others will not.”

The long-term success of this initiative may hinge on whether the involved firms advance from mere endorsement to normalizing disclosures about the information that has traditionally been difficult for investors to access, such as insider allocations and liquidity arrangements.

“The market can determine its value, but it should not have to operate in darkness,” Yanowitz concluded.