Since this summer 2021, the strengthening of the regulation of crypto-assets is very strongly activated in the United States. In this context, representatives of major companies in the crypto sector are called to speak before US lawmakers this December 8. The leaders of the FTX platform are among them, and are previewing their suggestions for a regulatory framework.
FTX to defend the cryptosphere before the House of Representatives
This Wednesday, December 8, 2021, Maxine Waters has invited several leaders of major crypto projects as well as exchange platforms to speak on the regulation of the digital asset industry.
The chairwoman of the House Financial Services Committee will thus bring in executives from Paxos (stablecoin USDP), the Stellar Foundation (XLM), Coinbase, but also Sam Bankman-Fried, the CEO of the FTX platform.
In anticipation of this hearing, the FTX teams have published on their blog a presentation of the 10 points of regulation that they see to improve, to make the crypto sector more compliant and safe.
Their first proposal is to have a single regulatory body for the crypto-asset sector, whether it is the spot market or the derivatives market (futures).
“(…) We believe that creating a model with a lead regulator, with existing market regulation, will promote standardization and harmonization of regulation globally, paving the way for international adoption and reciprocal jurisdictional recognition.”
In the U.S., this would therefore be a choice between the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
FTX wants to cut out the middleman as much as possible
But the FTX teams go far beyond recommending that the crypto market choose a single regulatory interlocutor. Among other proposals, the crypto exchange calls for cutting out the middlemen (and their fees) between the investor and the market.
“(Most) current market regulations envision a market with intermediaries, such as a broker (…) In contrast, crypto asset platforms are largely forgoing this mode of operation, in favor of a direct membership market structure, where end investors access the platform directly to trade, without going through an intermediary or broker (…) (…) The positive implications of this are potentially enormous and are just beginning to emerge (…) Markets without intermediaries create a more level playing field (…)”.
From FTX’s crypto market regulation recommendations
Without going into the details of each of FTX’s 10 proposals, the overall point is to modernize the aging traditional financial system, so that it adapts to the revolutionary crypto-asset sector, and also becomes more efficient in contact with the latter.
It’s not just in the United States, by the way, that crypto-currencies are shaking the financial world out of its slumber. All over the world, this new asset class is pushing for change. In India in particular, debates around the regulation of cryptos are raging, for worse or for better?
