FTX’s CEO will testify ahead of the Congress along with Coinbase representatives
Sam Bankman-Fried, CEO of FTX, will testify before the House of Representatives Financial Services Committee on December 8th, and he will do so along with representatives from Circle, Coinbase and other crypto companies as we read more about it in today’s crypto news .
FTX has been thoroughly preparing for the hearing since the CEO drafted regulatory proposals for the entire crypto industry.
FTX is one of the leading cryptocurrency exchanges for derivatives and spot trading as it has published a wish list of what to expect in terms of regulation in the United States. The key principles of market regulation of cryptocurrency exchange platforms allow rivals Binance and Coinbase to make regulatory recommendations while Sam Bankman-Fried prepares to testify in a few days before Congress. The policy document identified 10 principles that can lead to outstanding results for investors and the public.
– SBF (@SBF_FTX) December 3, 2021
At the top of the list was the call for a primary market regulator that could unbureaucratize FTX as it is a platform that offers spot and derivatives trading. Currently, the Securities Exchange Commission has primary jurisdiction over securities, which can include most negotiable assets. The CFTC handles derivatives like Bitcoin futures, so FTX recommends staying away from this fragmented approach and allowing platforms to choose a single regulator.
FTX’s listing includes the disclosure of platforms that can act as custodians of cryptocurrencies, which can then control the use of assets, limit transactions, or even block access to accounts through volatile assets. Other exchanges in DC are taking a proactive approach, and as far back as October Coinbase called for clarification on a single regulatory regime in its proposal for a directive on digital assets. Therefore, in order to avoid dealing with multiple regulators, it is necessary that responsibility for a tagged digital asset be assigned to a single federal regulator:
“Its powers include a newly established Digital Asset Markets (MDA) Registration Process and appropriate disclosure to notify digital asset buyers.”
FTX’s CEO will testify before Congress and share his ideas on regulation, but at the same time we can see Binance take a different approach and introduce a Bill of Rights for cryptocurrency users. While not as comprehensive as the FTX documents, it recognizes that platforms have a duty to protect users from malicious actors.