Regulatory Clarity Would Bring More Crypto Trading to US - FTX's Boss
Providing more regulatory clarity is the most important thing that can be done in order to attract crypto innovators to the US, FTX CEO Sam Bankman-Fried told senators.
He was speaking during a hearing on digital assets in the US Senate’s Committee on Agriculture.
In the hearing, titled Examining Digital Assets: Risks, Regulation, and Innovation, Democratic Senator Debbie Stabenow, who serves as the Chairwoman of the Senate’s agriculture committee, noted that she believes the presence of unregulated offshore marketplaces for digital assets poses “unacceptable risks to consumers” in the US.
“Getting clarity on the cash cryptocurrency market […] would be really great for the industry,” Bankman-Fried responded, noting that a lot of institutional capital is waiting for just that to happen before they move into digital assets directly.
Additionally, the FTX CEO suggested that a registration process for digital tokens would be helpful for bringing activity back to the US.
“There is a lot of activity taking place outside the United States right now because there is not a clear registration process for tokens,” he said.
“We are in a situation where 95% of volume is offshore today, and it would be great to see a lot of that move back […],” Bankman-Fried added.
Commenting more directly on the benefits digital asset markets can bring to consumers, Bankman-Fried stressed how crypto markets, as opposed to traditional financial markets, offers “equitable access” for all.
For instance, he said that market data in the digital asset space is generally free and transparent for everyone to see, and all users are able to send orders directly to an exchange.
This differs from the situation in traditional financial markets, where most consumers can’t
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