Crypto billionaire and founder of FTX, Sam Bankman-Fried, has taken to Twitter to clear the air about his proposed crypto regulatory framework that attracted a lot of backlash from crypto enthusiasts.
Bankman-Fried’s Framework Meets Resistance
Last week, the FTX CEO Sam Bankman-Fried posted a draft framework to create clarity and protect customers as the users await full federal regulatory regimes.
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 made proposals to reduce the frequency of DeFi hacks.
However, the proposal fell out of favor with 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 Air on 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 adds that the disagreement shows that he should heed the concerns of others 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.”
On the Flipside
- Sam Bankman-Fried and FTX are currently being investigated by the Texas securities regulator for offering unregistered securities, a potential violation of state law.
Why You Should Care
The pushback from crypto enthusiasts on the proposed regulatory framework highlights how important regulations will be in shaping the future of the nascent community.
Get more insight on the framework in:
Sam Bankman-Fried Posts Crypto “Norms Manual”
The investigation of SBF and FTX is covered below:
FTX and Sam Bankman-Fried Probed by Texas Securities Regulator – FTX Token (FTT) Plunges