Sam Bankman-Fried Clears the Air on Controversial Crypto Regulatory Framework

Sam Bankman-Fried Clears the Air on Controversial Crypto Regulatory Framework

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:

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.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).