(Bloomberg) -- Tyler and Cameron Winklevoss, long-term cryptocurrency bulls, don't fear regulation. They embrace it.
"These technologies can't flourish and grow without thoughtful regulation that connects them to finance," Tyler Winklevoss, chief executive and co-founder of the Gemini Exchange, said in an interview on Bloomberg Television. "As long as jurisdictions strike the right balance, we think that its going to be a huge boon and win for cryptocurrencies."
The twins have big bets placed on that win. They founded Gemini, which Cboe Global Markets Inc. is using as the basis for the daily settlement for the bitcoin futures that began trading in December. Bitcoin's rise likely helped elevate them to the billionaires club at one point. Now, they're each worth about $520 million, according to the Bloomberg Billionaire Index.
The rally in the digital coin that brought them such immense wealth has faltered in recent weeks, as panicked crypto investors sold amid increased scrutiny from global authorities. But the brothers, made famous for their tussles with Facebook Inc. Chief Executive Officer Mark Zuckerberg in the social network's early years, say that regulation is not to be feared -- and that rules are necessary, not a nuisance.
"Overall, my complaint would be that regulators haven't moved quick enough to make clear frameworks and paths forward for legitimate operators," Tyler Winklevoss said. He also said that stronger enforcement actions against bad actors, like "scam" initial coin offerings, need to be taken.
That message reverberated throughout Washington this week. The chairmen of the Securities and Exchange Commission and the Commodities Futures Trading Commission said at hearing on Capitol Hill Tuesday that Congress may need to tighten oversight of cryptocurrencies. But crypto investors have largely shrugged off the prospect of more policing. Bitcoin extended a two-day rally to trade 4.7 percent higher at $8,128 as of 11:16 a.m. on Wednesday, according to Bloomberg composite pricing.
"It's not a coincidence that the price of Bitcoin and Ether keeps going up with more regulated offerings like Gemini, more regulated offerings like the Bitcoin futures contract trading on the Cboe," Tyler Winklevoss said. "The more these things happen, the better its going to be for cryptocurrencies."
That is among the reasons the brothers are long on Bitcoin, and they aren't too concerned about the recent price fluctuations.
“We're in this for the long haul, whether that's a decade or many decades,” Tyler Winklevoss said. “We remember when Bitcoin was $8, so as far as we're concerned, it's all gravy from here."
--With assistance from Matthew Martin and Hussein Slim
To contact the reporters on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net, Kailey Leinz in New York at kleinz1@bloomberg.net, Tracy Alloway in Abu Dhabi at talloway@bloomberg.net.
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Joanna Ossinger
©2018 Bloomberg L.P.
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