Kategorie: Crypto News

• FTX chief executive officer, 29-year old Sam Bankman-Fried says that the US would do well as one of the major crypto markets if authorities aimed at regulatory clarity.

• He also commented on the existing regulatory environment, noting that crypto doesn’t need oversight that ‘gums’ up the industry.

FTX CEO Sam Bankman-Fried says markets regulation by the Commodity Futures Trading Commission (CFTC) and asset issuance regulation by the US Securities and Exchange Commission (SEC) already “makes a ton of sense.”

But there are lots of “nasty points” within the regulatory framework and that is something that needs to be worked on, he added.

Bankman-Fried, one of the several crypto exchange executives to recently testify before Congress, said this during an interview on CNBC’s “Mad Money” show on Monday.

Asked whether it would be better to have just the CFTC regulate the crypto industry, the FTX chief offered:

“I think it will make a ton of sense for some combination of the CFTC and the SEC to regulate the crypto industry.”

But at its core, the FTX boss noted, markets regulation by the commodities watchdog and asset issuance regulation by the securities agency is okay. He says this approach makes a lot of sense and is clearer to the crypto industry.

Crypto doesn’t need oversight that ends up ‚gumming‘ sector

According to Bankman-Fried, while the regulators already work within given frameworks, there are lots of aspects of regulation that need a lot more clarity to make sense when applied to the crypto ecosystem.

He also believes that proper regulation is what will bring cryptocurrencies to the mainstream and help the industry achieve global adoption, with consumer protection a key component.

“Let’s make sure that the regulatory oversight that needs to be there is there and oversight that doesn’t make sense isn’t gumming the industry,” he noted.

Regarding the last part of the above observation, Bankman-Fried says the solution lies in the removal of regulatory uncertainty; especially the back and forth regarding what is a security and what’s not. He also wants to see clarity for the stablecoin market.

There has been a lot of action (and talk) around crypto regulation, with some countries looking to ban aspects of the industry as part of a regulatory crackdown as did China earlier in the year.

In the US, the Federal Reserve and the SEC have indicated that they would not ban crypto, but regulatory oversight is high on the administration’s agenda. This week a Bank of International Settlements said 2022 is likely to see a global crypto regulation framework.

The post FTX CEO says crypto doesn’t need oversight that ‘gums’ the industry appeared first on Coin Journal.

The Bank of England is pressing for more stringent global policies to regulate the cryptocurrency sector

As per a report featured in the Sunday Times, the Bank of England intends to step up its efforts in setting up more crypto regulations. The bank highlighted slackness in the current pace towards realising this goal and wants global talks on the same to progress faster. The Times reported that apex UK bank was looking to hasten discussions on a regulatory regime for crypto assets.

Sarah Breeden, the bank’s director for financial stability strategy and risk explained that the need to protect the global economy was necessitated by the proliferation of financial institutions providing crypto trading and custodial services. The Central Bank official further revealed that the bank had encountered hitches in securing the relevant data it needed on the adoption of digital assets by institutional investors.

The bank asks for assistance from international bodies

Breeden told the outlet that the UK wasn’t in no position to collect the requisite data unaided and needed external help from international counterparts. She specifically noted that the country was counting on the Financial Stability Board to lend a hand. The board is responsible for making proposals affecting the stability of the global financial system.

„The ability to get data on what institutional investors are [holding] is a challenge. This is not something the UK can solve all on its own,“ she said.

Although the bank has in the past categorically said that it doesn’t consider digital assets a threat to its financial system, it is still wary of them. Earlier this month, the Central Bank held that the rate of growth of the cryptocurrency market was alarming and digital assets could morph into a concern if the sector remains not checked.

„We don’t have a regulatory framework that’s fit for crypto-coins yet, but what we are doing is rolling our sleeves up and getting ready to build it,“ Breeden stated.

The director for financial stability strategy & risk and deputy governor are of one mind

This is not the first time an executive from the bank has warned about cryptocurrencies being a potential trigger for instability. The bank’s Governor for financial stability Jon Cunliffe shares the same view. Cunliffe recently argued that it was imperative to have regulations, especially now that many financial institutions are getting more involved in the market.

As per a statement from Cunliffe to the BBC’s Today program, the proportion of UK household wealth said to be in crypto is only 0.1%. At least 2 million UK residents have an average of £300 in digital assets – a sector whose valuation is currently approaching $3 trillion.  The bank’s Deputy Governor holds that this exponential growth needs to be reviewed as it could harm the world’s economic stability.

„The point, I think, at which one worries is when it becomes integrated into the financial system, when a big price correction could really affect other markets and affect established financial market players,” he remarked.

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