FTX founder urges regulators to create a unified crypto framework
Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, reportedly called out regulators to create a single framework for digital assets in the Asian Financial Forum, an event organized by Hong Kong's government to highlight new opportunities within the region's economic landscape.
The businessman pointed out that instead of focusing on determining whether assets are securities or not, regulators must focus on consolidating the regulations and creating a rule book on crypto.
Bankman-Fried also noted that a framework that focuses on disclosure and the prevention of fraud may be more important than labeling assets as securities or not. While the FTX CEO didn’t specify which regulatory bodies he was calling out, many regulators worldwide are focused on classifying whether tokens are securities or not. However, he is convinced that this will not protect investors.
Additionally, the crypto billionaire also highlighted how there are regulatory frameworks for other asset classes, noting that the same should be done for digital assets.
This is not the first time that the young exchange founder engaged with regulators. Back in December 2021, Bankman-Fried along with other executives from prominent crypto firms were called to attend a committee hearing, where they urged US regulators to provide regulatory clarity on digital assets.
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Meanwhile, many experts expect major advancements in regulatory standards in 2022. In a Cointelegraph survey, Hatu Sheikh, co-founder and chief strategy officer of DAO Maker said that regulators “realize the industry is maturing and currently is even too big to have a blanket ban imposed.” Sheikh also mentioned that regulations are necessary while restrictions are not.
In the same survey, EasyFi Network CEO Ankitt Gaur said that decentralized finance (DeFi) may be a focus of regulations in 2021. “DeFi is slowly making its way toward the mainstream, conversations around regulation are emerging,” Gaur said.