Sam Bankman-Fried, the founder and CEO of digital asset exchange FTX, is proposing methods for regulating cryptocurrencies that ensure consumer protection and trust.
Bankman-Fried says in a CNBC interview that crypto assets possessing stock-like qualities should be regulated as such.
The FTX CEO also says regulatory oversight that “doesn’t make sense” shouldn’t be allowed to stifle the crypto industry.
“How do we get from where we are today to a truly mainstream global industry that has the consumer protection and the trust that people [are] used to?
I think that you have people going back and forth on like ‘this is a security, this isn’t a security and it has really great regulatory implications right now.
Where we need to get to I think is a world in which we say look some of these things have properties that are like traditional equities or securities. Some of them have properties, they’re like commodities.
Instead of arguing about exactly what classification they should have, let’s make sure that the sort of regulatory oversight that needs to be there is there.
And that oversight that doesn’t make sense isn’t gumming up the industry.”
According to the FTX founder, implementing regulations that normally apply to traditional assets to some aspects of the crypto industry makes “sense” but requiring decentralized projects to demand user information does not.
“Having the kind of standard controls that you see with equities around the supply, the issuance, the burning of tokens would make a ton of sense.
But you know not mandating that they fill out forms that one couldn’t fill out as a decentralized token project.”
Bankman-Fried says that in the case of stablecoins, requiring transparency on the holdings would be a reasonable step to take.
“I think with stablecoins having a website that shows they have what they say they have makes a lot of sense.”
A recent report from the U.S. Department of Treasury pointed out the need for responsible regulation of stablecoins.
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