- The CEO of FTX trading limited, Sam Bankman-Fried recently showed his support for federal oversight of digital assets.
- He said that the SEC will be responsible for the regulation of qualified tokens.
Sam Bankman-Fried is the youngest billionaire and an active investor in crypto. He made his words in the favour of federal oversight of cryptocurrencies. He believes that the US Securities and Exchange Commission (SEC) will become the reason for the regulation of the tokens, which are authorised as securities.
On the other hand, the Commodity Future Trading Commission (CFTC) will control the tokens that contain the relevant features of commodities.
FTX CEO made his statement after the harsh scuffle of Coinbase with the SEC. As per the report by SEC, around nine cryptocurrencies are documented by the biggest U.S. cryptocurrency exchange, Coinbase is unlisted securities. Also, the regulator has revealed that most tokens documented by Coinbase fall into that category.
In addition to that, the source of the complaint is not yet clear regarding the tokens or exchange. Hence, they will not be able to secure themselves in court.
Coinbase then backfires the reported claim of SEC through a blog post. It then claims that they do not list securities on its exchange platform. Coinbase also demands a “concrete” regulatory structure for digital currencies.
Continuing ṣaccusation, Coinbase also blames the SEC for trying to take cryptocurrencies into their administration. However, they are not securities.
The Old Battle
It is not the first time that the regulatory and exchange are fighting. In September 2021, SEC and Coinbase were battling on a launch program. In which Coinbase was ready to launch a ‘Lend Feature’ for customers, that would benefit customers to earn interest on particular coins.
But, Coinbase cancels their ‘Lend Feature Program’ after the SEC threatened them with a lawsuit.
Additionally in an insider-trading case, a former prosecutor and a member of Akin Gump says that the SEC is required to provide a list of tokens that are securities for Coinbase.
If we take a look at early June, Bankman-Fried stated that the federal regulation was good for cryptocurrencies. Also, he predicted that this year would somehow bring more clarity for regularity in the crypto ecosystem. His words support supervision of cryptocurrencies.
Bankman-Fried once commented on Bitcoin’s future. He said Bitcoin does not have a future as a payment network.
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