The businessman pointed out that instead of focusing on determining whether assets are securities, regulators must focus on consolidating the regulations and creating a rule book on crypto.
Bankman-Fried also noted that a framework that focuses on disclosure and the prevention of fraud may be more important than labeling assets as securities. While the FTX CEO didn’t specify the regulatory bodies he was calling out, many regulators worldwide are focused on classifying tokens as securities. However, he is convinced that this will not protect investors.
Additionally, the crypto billionaire also highlighted the regulatory frameworks for other asset classes, noting that the same should be done for digital assets.
This is not the first time that the young exchange founder engaged with regulators. Back in December 2021, Bankman-Fried along with other executives from prominent crypto firms were called to attend a committee hearing, where they urged U.S. regulators to provide regulatory clarity on digital assets.
Meanwhile, many experts expect major advancements in regulatory standards in 2022. In a Cointelegraph survey, Hatu Sheikh, co-founder and chief strategy officer of DAO Maker said that regulators “realize the industry is maturing and currently is even too big to have a blanket ban imposed.” Sheikh also mentioned that regulations are necessary while restrictions are not.
In the same survey, EasyFi Network CEO Ankitt Gaur said that decentralized finance (DeFi) may be a focus of regulations in 2021. “DeFi is slowly making its way toward the mainstream, conversations around regulation are emerging,” Gaur said.
