FTX CEO says crypto doesn’t need oversight that ‘gums’ the industry

• FTX chief executive officer, 29-year old Sam Bankman-Fried says that the US would do well as one of the major crypto markets if authorities aimed at regulatory clarity.

• He also commented on the existing regulatory environment, noting that crypto doesn’t need oversight that ‘gums’ up the industry.

FTX CEO Sam Bankman-Fried says markets regulation by the Commodity Futures Trading Commission (CFTC) and asset issuance regulation by the US Securities and Exchange Commission (SEC) already “makes a ton of sense.”

But there are lots of “nasty points” within the regulatory framework and that is something that needs to be worked on, he added.

Bankman-Fried, one of the several crypto exchange executives to recently testify before Congress, said this during an interview on CNBC’s “Mad Money” show on Monday.

Asked whether it would be better to have just the CFTC regulate the crypto industry, the FTX chief offered:

“I think it will make a ton of sense for some combination of the CFTC and the SEC to regulate the crypto industry.”

But at its core, the FTX boss noted, markets regulation by the commodities watchdog and asset issuance regulation by the securities agency is okay. He says this approach makes a lot of sense and is clearer to the crypto industry.

Crypto doesn't need oversight that ends up 'gumming' sector

According to Bankman-Fried, while the regulators already work within given frameworks, there are lots of aspects of regulation that need a lot more clarity to make sense when applied to the crypto ecosystem.

He also believes that proper regulation is what will bring cryptocurrencies to the mainstream and help the industry achieve global adoption, with consumer protection a key component.

“Let’s make sure that the regulatory oversight that needs to be there is there and oversight that doesn’t make sense isn’t gumming the industry,” he noted.

Regarding the last part of the above observation, Bankman-Fried says the solution lies in the removal of regulatory uncertainty; especially the back and forth regarding what is a security and what’s not. He also wants to see clarity for the stablecoin market.

There has been a lot of action (and talk) around crypto regulation, with some countries looking to ban aspects of the industry as part of a regulatory crackdown as did China earlier in the year.

In the US, the Federal Reserve and the SEC have indicated that they would not ban crypto, but regulatory oversight is high on the administration’s agenda. This week a Bank of International Settlements said 2022 is likely to see a global crypto regulation framework.