Sam Bankman-Fried Backtracks On Cryptocurrency Regulatory Framework

Sam Bankman-Fried Backtracks On Cryptocurrency Regulatory Framework

  • Industry members were quick to accuse the framework of going against the founding principles of cryptocurrency
  • Sam Bankman-Fried is the fourth largest political donor in the US, and he wants to have a say in how cryptocurrency is regulated

FTX CEO Sam Bankman-Fried refines — and in some cases, backs away — The Cryptocurrency Regulatory Framework That He Dropped Last Weekwhich was acknowledged as a work in progress.

Bankman-Fried last week published His opinion on how to regulate the cryptocurrency industry. The document, dubbed the Potential Digital Asset Industry Standards, is a breakdown of how Bankman-Fried thinks the industry should operate, from sanctions policies to token ratings.

Cryptographic advocates were quick to criticize the standards. Erik Voorhees, Founder of ShapeShift, coined the open letter In response, Bankman-Fried’s proposals run counter to the founding principles of cryptocurrency.

“Sam’s suggestion that the industry ‘should respect OFAC’ is inappropriate,” Voorhees wrote. “No one who honestly advocates for an ‘open and free economy’ can support such blatant financial discrimination against millions of innocent people.”

Bankman-Fried responded by saying he sympathized with “innocents trapped in broader blocks of sanctions,” “a political conversation worth engaging in.”

Others were keen to criticize the proposal’s stance on decentralized finance. Twitter users largely agreed that putting DeFi projects in the same regulatory framework as central companies would be a mistake.

“SBF is a great businessman. But unfortunately, he is not a big advocate of DeFi and encryption space,” one Twitter user He said in response to the frame.

in Twitter theme On Sunday, Bankman-Fried thanked opponents for their “constructive feedback” – adding that he would amend the original proposal as needed.

The head of centralized exchanges held by FTX should take responsibility for providing products to users who understand the risks and are able to make informed decisions.

“If you are going to enter products on regulated exchanges, do so on the basis of understanding, not wealth,” he added, referring to the idea that the capabilities of traders should not be determined by net worth.

Guidance and response come like us midterm elections inch closer. The industry is closely watching candidates who can develop digital assets. Bankman-Fried in particular was quick to open his wallet.

At the beginning of the year, the president of FTX ranked fourth of all the major donors in the United States, with a total contribution of more than $39 million, according to data from the Federal Election Commission and Unlock the secrets. Bankman-Fried once said he could donate up to $1 billion during the 2024 election cycle but has since fallen back.

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  • Casey Wagner


    Senior Reporter

    Casey Wagner is a New York-based business journalist who covers regulations, legislation, digital asset investment firms, market structure, central banks, governments, and CBDCs. Prior to joining Blockworks, she was reporting on markets for Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies. Contact Casey by email at [email protected]

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