Sam Bankman-Fried, the CEO of FTX exchange has called out regulators to create a single regulatory framework for digital assets. This was at the Asian Financial Forum, an event held by Hong Kong’s government.
Instead of focusing on assessing whether assets are securities, the businessman believes that regulators should concentrate on simplifying regulations and developing a crypto rule book.
A framework that focuses on transparency and fraud prevention, according to Bankman-Fried, may be more significant than classifying assets as securities. While the FTX CEO did not name the regulatory authorities that he was criticizing, several regulators across the world are working to designate tokens as securities. He is confident, however, that this will not protect investors.
In addition, the crypto billionaire emphasized the regulatory frameworks for other asset classes, stating that digital assets should follow suit.
This isn’t the first time the exchange’s teenage creator has had to deal with regulators. Bankman-Fried was summoned to a committee hearing in December 2021, together with other leaders from leading crypto firms, to encourage US regulators to offer regulatory clarification on digital assets.
Meanwhile, several specialists anticipate significant regulatory developments in 2022. Hatu Sheikh, co-founder and chief strategy officer of DAO Maker, claimed in a survey that regulators “recognize the market is evolving and is currently even too vast to have a blanket ban applied.” Regulations are necessary, but limits are not, according to Sheikh.
EasyFi Network CEO Ankitt Gaur indicated in the same study that decentralized finance (DeFi) may be a focus of legislation in 2021. “DeFi is steadily finding its way into the mainstream, and regulatory discussions are starting to emerge,” Gaur said.