- CEO of FTX release a draft of set standards that could be enacted in the crypto space.
- The draft touches on important aspects of the industry and considers real-life scenarios.
- “What you describe is basically turning crypto into regular banking” tweets a user.
Sam Bankman-Fried, the CEO of FTX crypto firm released a document that contains a draft of a set of standards that could be enacted in the crypto industry. The document titled “Possible Digital Asset Industry Standards” seeks to create clarity and protect customers while awaiting full federal regulatory regimes.
Bankman-Fried took to Twitter to inform his followers that he delivered the draft as promised earlier.
1) As promised:My current thoughts on crypto regulation.https://t.co/O2nG1VrW1l— SBF (@SBF_FTX) October 19, 2022
The document gives an overview of sanctions compliance on blockchain environments, what must be done if a hack occurs, who must be held responsible, and most importantly it discloses how to prevent scams and preserve the investors.
In addition to that, the draft takes into consideration real-life scenarios that could occur and explains what should be done as per the scenario.
However, this draft released by Bankman-Fried doesn’t seem to be received well by the crypto Twitter community.
Crypto investor, Ryan Sean Adams took to Twitter and highlighted a few points of Bankman-Fried’s draft and said that that particular regulation proposed “would eliminate the U.S. from the crypto race”. Adams quoted the section that he disagrees with in his reply to Bankman-Fried’s post.
Sam.With respect.This absolutely sucks.You're saying DeFi should be OFACed.You're saying onchain freeze's should be normal.You're saying DeFi front-ends to register as a broker-dealer.No, this is not reasonable.This would eliminate the U.S. from the crypto race. pic.twitter.com/AtlvHgaAkL— RYAN SΞAN ADAMS – rsa.eth (@RyanSAdams) October 19, 2022
Another user who was disappointed with Bankman-Fried’s draft said that these regulations were taking them back to square one where crypto was turning into regular banking. The user’s post further states:
So what you mean is turn it into exactly what’s broken and has been for decades. What you describe is basically turning crypto into regular banking and to be honest if it becomes that I’m out. I don’t want some half in half out garbage that is once again gate-kept by the rich.
Interestingly one user who was skeptical about Bankman-Fried’s draft tweeted that he wanted confirmation from Changpeng Zhao. The user tweeted “you’re as shady as an oak tree. Let’s ask @cz_binance if he thinks this is what’s best for crypto”
However, neither Sam Bankman-Fried nor FTX, feel confident that this structure is exactly correct–it’s just a draft.
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