Standard Developing Organizations as a Form of Self-Regulation

Jane K. Winn, University of Washington - School of Law

9/19/2008
(Original Publish Date: 9/1/2006)

Standard developing organizations (SDOs) can help unify uncoordinated economic activities and conflicting business interests by supporting the growth of viable systems of self-regulation. This paper considers three organizations that have successfully combined the roles of SDO and self-regulatory organization: the National Automated Clearing House Association (NACHA), which manages an electronic funds transfer network; the Electronic Benefits and Services Council (EBSC), which manages a system for clearing electronic food stamps; and the Federation for Identity and Cross-Credentialing Systems (FIXs), which manages a system for authenticating government employees and contractors entering defense facilities. The operation of each organization is examined in light of criteria for effective self-regulation, and of market adoption rates for the standards each organization produces. The paper shows how differences in market conditions and the maturity of the technologies being standardized have resulted in varying degrees of success among the three organizations.