The Banks own the Feds they own the game.
SEC / CFTC Gary Gensler are all there to protect the Banks.
The Fed won’t update any rules and/or regulations
Bitcoin /Crypto are forced to comply with outdated laws that shouldn’t be the framework.
Sam Bankman-Fried
SBF @SBF_FTX
Right now devs can’t write code in the US without fear of requiring a license they couldn’t possibly get, and you can’t launch a token without fear of prosecution for not completing a registration no one could complete. If the industry argues for no regs this is what we get.
FTX Policy Regulation – Possible Digital Asset Industry Standards
1) As promised: THREAD 1 – 15
My current thoughts on crypto regulation.
2) At a high level:
a) we need regulatory oversight and customer protection
b) we need to ensure an open, free economy, where peer to peer transfers, code, validators, etc. are presumptively free
c) we should establish regulation–and until then standards–to ensure (a/b)
REACTIONS
Sam Bankman-Fried just published his thoughts on the future of regulation in crypto.
It’s structured as a set of self-governing community norms, but it also serves as a suggested framework for regulators to adopt.
Jon Wu Here’s what it recommends: Thread 1 – 7
https://twitter.com/jonwu_/status/1582909696830152705
Maya Zehavi
Given FTX is the bull market winner Sam gets to write the rules & choose which hill to die on.
What’s interesting is that he chose p2p payments & not permissionless smart contracts, where free speech & open crypto sandbox actually proves the tenacity of permissionless.
The reason why crypto needs to be permissionless is to remain a contra to the self dealing in asymmetrical financial info that become the backbone for business as usual in tradfi.
I started out in crypto believing permissionless was a temporary reality till the space matures
But that creating gated moats for crypto where only the incumbents, winners & old boys can play in is detrimental to any prospect of realizing what crypto can shape markets, computation & privacy.
The promise of crypto rails is to serve as leveling infrastructure for data/devs
The FTX proposal is a launch pad for regulatory stamp for “permissioned” DeFi for institutionals to source liquidity off of retail, when liquidity dries up in tradfi markets given the global macro & peak dollar.
The boomerang of incumbent gates is that the US looses innovation
Even the best intentioned projects can’t comply with that, not out of I’ll intent but technically that’s almost impossible when the requirement is to force tradfi market manipulation rules to open permissionless contracts. It’s essentially prohibiting DeFi as we know it
Given the SBF proposal there are 4 actors in the space we should be concerned with :
1. Builders, US smart contract devs & infra
2. DeFi participants – LPs, retail & DAO voters
3. End user conduits – wallets, front end & blockchain data providers
4. The incumbent moats
It’s not just a fancy lawyer talking to the cftc, but a list of measures:
– register w CFTC
– Chief Compliance Officer
– compliance systems to follow rules
– monitor trades
– provide info to CFTC and public
– suspend users who violate rules
– fraud/risk mgmt systems
scott @scott_lew_is
FTX is spending money to push a law thru congress that may force defi protocols to operate like centralized exchanges. The proposal is called the Digital Commodities Consumer Protection Act.
A better name would be the Digital Commodities FTX Protection Act.