Sam Bankman-Fried (SBF): I’m Optimistic We’re Making Progress On Crypto Regulations
Sam Bankman-Fried (SBF): I’m Optimistic We’re Making Progress On Crypto Regulations
Crypto exchange FTX’s CEO Sam Bankman-Fried, otherwise known as SBF, recently took to Twitter to voice his opinions on the current crypto regulations and offered suggestions on how regulations could be further improved. Despite his suggestions, the CEO claims that he feels rather optimistic about the improvement of crypto regulations.
SBF’s Regulation Suggestions
1) As promised:
My current thoughts on crypto regulation.https://t.co/O2nG1VrW1l
— SBF (@SBF_FTX) October 19, 2022
SBF first highlights that one of the most important things in regulations should be regulatory oversight and customer protection. For this, there are a number of things that can be done by regulators, one of which is having a reliable blocklist for crypto addresses that are known to be associated with illicit finance or illicit activities in order to ban them from trading.
Related: FTX Sam Bankman-Fried Response to Mango Markets Hack
Secondly, SBF suggests creating a community standard that would require hackers or attackers to return a majority of their stolen assets, which would in turn reduce the impact of the attacks and security breaches.
Finally, to protect customers, SBF said that there should be more regulations in relation to public disclosures and transparency.
Bankman-Fried then goes on to talk about DeFi, which he described to be “one of the trickiest areas to get right.” SBF wrote: “The most important thing is that we do not jump the gun: that industry, regulators, and lawmakers work collaboratively and thoughtfully together.“
“But we should make sure that code, peer to peer transfers, validators, etc. are free while also ensuring that retail-facing platforms and marketing build in customer protection.“
Lastly, the FTX CEO suggests more regulatory oversight and publicly accessible information on Stablecoins. This way, customers will be able to confirm whether the Stablecoin they’re investing in really is backed by the USD.
“All of these are just suggestions, and I would love feedback on them. It would be ideal if some industry group(s) took the lead in publishing what they felt were appropriate standards. And ultimately, we need sound regulatory frameworks.” SBF wrote, “I’m optimistic that we’re making progress on that last point.”
He continued, “I’m optimistic, for instance, that the Stabenow-Boozman bill would protect customers while also protecting economic freedom; and that federal regulators are making progress towards thoughtful frameworks.“
Crypto Regulation
For years now, regulatory framework has been a big topic in the crypto space, with many large investors and analysts claiming that clear crypto regulations are the last push needed in order for cryptocurrencies to really rise and take off.
In fact, just last week it was revealed that a number of large banks are actually interested in diving into the world of cryptocurrencies and blockchain, however they’re adamant to invest until there are better and clear crypto regulations put in place.
Related: Big Banks Waits For Crypto Regulations Clarity Before Jumping In
With such a big name like SBF voicing his optimism at the future of crypto regulations, it has made many in the community feel more bullish on the future of cryptocurrencies.
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