SBF: Crypto Regulatory System Needs to Be 'Knives in Balance'
This article comes fromDecryptThis article comes from
, the original author: Scott Chipolina, compiled by Odaily translator Katie Ku.
Sam Bankman-Fried, CEO of crypto derivatives giant FTX, said that the crypto regulatory system is currently on a knife's edge.
“It’s been really interesting to be at the forefront of crypto regulatory thinking and to see every part of that process up close,” SBF said on the Decrypt podcast. Interesting, this really has a profound impact on the ecosystem."As one of the rare young billionaires in the crypto space, SBF must have been thinking about regulatory issues for the past few months. In December, he was one of the crypto chief executives who participated in Congress. shortly after that,
He told Decrypt that he feels that the bright spot of 2021 will not be his company's massive user growth or sports marketing spending spree, but the progress made on the regulatory front.
While he was trying to make friends with US lawmakers, SBF moved from Hong Kong to the Bahamas last September in search of friendlier regulation. “The Bahamas has an actual regulatory framework for cryptocurrencies. There are very few places on Earth right now. Almost everywhere is basically in a state of chaos and uncertainty right now,” he said on the podcast.
While many crypto enthusiasts are dissatisfied with the U.S. government’s crypto policies, especially after the infamous $1.2 trillion infrastructure package that included language to tax crypto brokers. But SBF believes that attending Congress to discuss encryption is "very valid and reasonable." He added: “I think there’s a lot of representation out there, and most of their goal seems to be to figure out what’s going on in the crypto space and ask questions that help them get there.”
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U.S. cryptocurrency regulation
When Securities and Exchange Commission (SEC) Chairman Gary Gensler took office, many crypto folks considered him to be crypto-friendly, largely because he taught a course at MIT on blockchain technology. But so far, that hasn't been the case.
Still, the crypto industry has some supporters in the government, including pro-Bitcoin Senator Cynthia Lummis, who just last month proposed the appointment of a new regulator to focus on the industry.
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Will the United States miss the "cooked duck" of Crypto?
Encryption has quickly become a contentious topic among members of Congress, many of whom sound unfriendly to the industry, but SBF believes there is still potential for the U.S. to evolve into a more inclusive crypto jurisdiction.
“Over the past four years, due to the regulatory framework, most cryptocurrencies have flowed overseas,” said his office in the Bahamas, adding that only 5% to 10% of global cryptocurrency trading volume is currently in the U.S. exchange conducted.
However, he said, "I am cautiously optimistic, and I want to emphasize 'cautious'. Because encryption may actually be going in the opposite direction, and it may actually belong to onshore (onshore). If in the next year or two Great progress here, I wouldn't be shocked that you might see a tripling of onshore liquidity ratios and trading volumes. I think that's probably our highest priority right now to see if we can help accomplish the goal."
