FTX CEO Sam Bankman-Fried says crypto regulation would be positive but a ban “sad”
Sam Bankman-Fried, CEO of the crypto derivatives exchange FTX, who according to the Forbes 2021 List is the wealthiest 20’s in the world, said that stricter regulation of cryptocurrency exchanges could have positive effects for investors.
“It is time consuming and absolutely necessary, and we are very much in favor,” Bankman-Fried said in an interview with Bloomberg.
The billionaire made his comments just as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) discuss stricter regulations and frameworks around crypto exchanges.
When Bloomberg asked Bankman-Fried what tighter lending products might mean for crypto companies (like the one Coinbase wants to offer), he said:
“Done right, these programs can be great for consumers; Done correctly, they can provide consumers with much higher returns on their assets. That could be attractive to sophisticated investors looking for a higher return on their capital. Still, it is important to do it within existing regulatory frameworks or to build new frameworks for them”.
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Bankman-Fried also said that a ban on stablecoins would be “sad” given how useful they are.
“Stablecoins add a lot of value to the system and make it easy to interact with everything, frankly, even FTX,” Bankman-Fried said.
“…And I think that’s great and I think it would be sad to lose that. You know, the show would go on, you could still use the product, it would just be less efficient. And I think that if there is a regulatory crackdown, stablecoins would cease to exist, but there are other types of regulatory interventions that I think would be healthy. “
He added that it would be much easier to operate in an environment where sensible ground rules are established that allow for innovation.