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- The CEO of a major crypto exchange FTX, Sam Bankman Fried recently testified to congress where he pointed out messy US regulations that needed to be fixed
- Bankman Supports the Idea of SRO as a simile to FINRA .
- The CEO also addressed the case of FTX going public.
The era of cryptocurrencies has just begun where the regulators are speeding their way to place frameworks & policies to help investors create a safe & a level playing field, while some call it elaborate structures, others look at it as a tedious process. In a recent event, the CEO of FTX , Sam Bankman Fried testified to the congress about regulations around the crypto sphere.
Later on, the CEO & the US President of FTX, Brett Harrison, were interviewed for Bloomberg’s “what goes up” podcast. The two gentlemen shared their views on current scenarios on the markets & regulations around cryptocurrencies.
About the testimony, the CEO seemed pleasantly surprised as he expected the questions to be grand while it happened to be more inclined towards the specifics of the crypto world. Bankman was appreciative of the congress as they had done a good job getting up to speed in regards to digital assets & currencies.
When asked about the ways the crypto market needs to evolve, Bankman frankly asserted the fact, where he points out the regulation tangent & addressed that the US had a lot of messy parts of it in the ecosystem. The CEO suggested that just regulation around stablecoins that are fully reserved would be something that addresses a lot of concerns around them.
The interviewer asked about Coinbase’s self regulatory organisation (SRO) to which Harrison & Bankman acknowledged that they were on board with it while stating that the FTX US derivatives was a kind of SRO & DSRO but in context to larger spectrum of the market, the US president of FTX used powers of Financial Industry Regulatory Authority (FINRA) as a simile while also stating that such a measure would take time, especially when it’s primarily self regulating.
Bankman stated that even with SRO present it did not mean for absence of federal regulatory oversight as well, adding to it the SEC & CFTC have important roles to play in the ecosystem.
When asked if the US became the standard-bearer of regulations for that world would it make the country more & less attractive to the investors, Bankman pointed out that the United States held only 5-10% of global volume which was a tiny share in contrast to the world but however he seemed optimistic that US could gain more. While Harrison pointed out that it wasn’t the regulations that drove away businesses but the uncertainty around it, he took the derivatives market regulator as an example, CFTC is the most rigorous regulator in the world but also have the world’s most liquidity & derivatives.
The conversation then jumped on the more technicalities on Stablecoins & NFTs, where both the executives pointed at the need for regulation in accordance to stablecoins & more participation of the users in the NFT market. The interview reached its end where the CEO asked if FTX had plans to go public?
Bankman addressed the question as the firm is thinking about it but has no roadmap as of now, The CEO stated the FTX was obviously a big operation & the firm was fortunate enough to not be in a position to deliberate its listing, but however, as FTX is profitable, the CEO was confident that they’d be able to raise in the private markets as well. Therefore they were still thinking about FTX IPO and hitting the trading floors as the answer hit vague & the CEO concluded by stating that he really wasn’t sure about it.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
