The FTX Founder Urged Regulators To Create Better Crypto Framework

The FTX founder urged regulators to create a better and more unified crypto regulatory framework as we can see more today in our latest cryptocurrency news.

The FTX Founder urged regulators to create a single framework for digital assets in the Asian Financial Forum which is an event organized by the Hong Kong government to outline new opportunities in the region’s economic space. Sam Bankman-Fried pointed out that instead of focusing on whether these assets are securities or not, regulators have to focus on consolidating the regulations and create a rule book on all things crypto. Bankman-Fried noted that the framework focuses on disclosure and prevention of fraud that could be more important than labeling assets as securities or not. While Sam Bankman-Fried didn’t quite specify which regulatory bodies he was calling out but most regulators across the world are focused on classifying whether these tokens are securities. He is still convinced that this will not protect the investors.

The crypto billionaire outlined how the regulatory framework for other asset classes and noted that the same should be done for crypto assets. This is not the first time that the entrepreneur engaged with regulators. Back in December 2021, Bankman-Fried as well as other executives from prominent crypto companies were called to attend the committee hearing where they urged the regulators to provide more clarity on digital assets.

In the meantime, most experts expect huge advancements in regulatory standards in 2022 and the co-founder of DAO Maker Hatu Sheikh noted that the regulators realize this industry is maturing and now too big to have a blanket ban imposed. Sheikh mentioned that the regulators are necessary while the restrictions are not. In the same survey, EasyFi Network CEO Ankit Gaur also said that the DEFI space could be a focus of regulations in 2021:

 “DeFi is slowly making its way toward the mainstream, conversations around regulation are emerging.”

As recently reported, FTX US will start offering new products to its customers such as crypto derivatives and non-fungible token services on the platform. According to Brett Harrison, the FTX US president, the exchange is building a self-hosted wallet that will support FTX NFTs and NFT gaming. The exchange is also looking to offer tokenized stock trading for US customers. The idea to offer these crypto derivatives to US customers was in the works for months.