Sam Bankman-Fried Clears The Air on Controversial Crypto Regulatory Framework
Sam Bankman-Fried is a crypto billionaire and the founder of FTX. He took to Twitter to clarify his proposed crypto regulatory framework. This has attracted a lot attention from crypto enthusiasts.
Bankman-Fried’s Framework Meets Resistance
Last week, Sam Bankman Fried, CEO of FTX posted a draft framework to provide clarity and protection for customers as they waited for full federal regulatory systems.
SBF has proposed that “blocklists” be created to sanction transactions and suggested the OFAC keep a real-time updated on-chain list of sanctioned addresses. He also proposed to reduce the frequency and severity of DeFi hacks.
The proposal was rejected by the crypto community. Many crypto users contended that the sanctions could increase censorship, decrease decentralization, and damage “the entire value of Web 3.0” which would “eliminate the U.S. from the crypto race.”
SBF Clears the Framework
Thanking everybody who gave their “constructive feedback, comments, and criticism” SBF took to Twitter to announce that he had revised some of his posts and will continue to do so going forward.
SBF clarified that the core goal of his bill is to regulate centralized crypto venues, rather than “making claims about what DeFi devs, smart contracts, and validators must do.” A part of SBF’s Twitter thread reads:
7) The core goal of the bill is to regulate *centralized* crypto venues.The main *DeFi* touchpoint is: *how can a regulated centralized entity interface with DeFi?*
— SBF (@SBF_FTX) October 23, 2022
He also said that disagreements show that he should listen to others’ concerns and learn from them. While he admits the proposed framework is not foolproof, he believes regulation will become “better, clearer, and create pathways for crypto to come back onshore.”
- The Texas securities regulator is currently investigating Sam Bankman-Fried as well as FTX for offering unregistered securities. This could be a violation of state law.
Why you should care
The resistance from crypto enthusiasts to the proposed regulatory framework shows how important regulations are in shaping the future community.
You can find more information about the framework here:
Sam Bankman-Fried Posts Crypto “Norms Manual”
Below are the details of the investigation into FTX and SBF.
FTX and Sam Bankman-Fried Probed by Texas Securities Regulator – FTX Token (FTT) Plunges