Sam Bankman-Fried Urges Regulators To Set Up A Unified Crypto Infrastructure

FTX exchange founder and CEO, Sam Bankman-Fried, has now called out regulators to develop a centralized regulatory infrastructure for the digital assets. He allegedly called out regulators encouraging them to create a unified regulatory framework to govern the digital assets. He was speaking in the Asian Financial Forum, an event that was organized by the government of Hong Kong.

The forum also highlighted new opportunities that exist within the region’s economic landscape. Bankman-Fried said that instead of focusing mainly on determining whether assets are securities or not, the regulators should focus their efforts on integrating and consolidating regulations and developing a rule book on cryptocurrency.

He also mentioned that a framework that mainly focuses on disclosure and the prevention of criminal activities might be more important than labeling these virtual assets as securities.

While Bankman-Fried never specified the regulatory agencies he was calling out on this occasion, most regulators globally have insisted on classifying tokens as securities. Nonetheless, he believes that this classification will not manage to protect the investors appropriately.

Bankman-Fried Insists On Regulatory Clarity

Moreover, the crypto billionaire also said that the regulatory networks for the other asset classes need some improvement, and the same must be done for the digital assets. That is not the first time the CEO has engaged actively with regulators.

In December 2021, Bankman-Fried joined other top executives from popular crypto companies in attending a committee hearing. On that occasion, the executives encouraged the US regulators to offer extensive regulatory clarity on digital assets.

In the meantime, most of the experts now expect some major advancements in regulatory standards throughout this year. In a recent survey, the co-founder and chief strategy officer of DAO Maker, Hatu Sheikh, said:

“Regulator realize the industry is maturing and currently is even too big to have a blanket ban imposed.”

Sheikh also highlighted that regulations are important while restrictions are not. Within the same survey, EasyFi Network CEO Ankitt Gaur stated that decentralized finance (DeFi) might be a focus of regulation last year. He commented:

“DeFi is slowly making its way toward the mainstream, conversations around regulation are emerging.”