SBF Warns About Policymakers’ Decisions Affecting DeFi

FTX founder and CEO Sam Bankman-Fried, often known as SBF in the crypto business, warned authorities against “locking in” choices that might affect decentralized finance.

The DeFi commentary was released on Wednesday afternoon in a 3,800-word industry norms manual.

FTX is also being investigated by Texas regulators for how successfully it follows financial rules, which might hinder FTX’s intended purchase of insolvent crypto lender Voyager’s assets. Bankman-Fried wrote:

“Above all else: figuring out how and where DeFi and things tangentially related to DeFi do and don’t fit into regulatory contexts is a hard problem, and one on which there is not yet firmly settled thought. We should be careful about locking in decisions absent working out a sound and responsible basis for doing so.” 

The founder of FTX expressed optimism that an industry group would consider the concerns raised in his draft and finally publish a suitable set of community rules.

SBF also highlights the potential of blockchains to help traditional financial markets in the piece.

“Tokenizing stocks could help simplify securities settlement, providing a stronger and more equitable market structure for retail,” SBF wrote.

FTX will also not publish tokens in the United States before following the legal criteria established by a Supreme Court ruling to determine whether a financial asset is a security, which is the normal operating procedure for most U.S.-based financial institutions.

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