Start of the week, Sam Bankman-Fried, the CEO of FTX, has been the target of much criticism on Twitter. For good reason, he supports a bill on the regulation of cryptocurrencies that members of the cryptosphere do not endorse. Following this controversy, he decided to defer to the will of the community. That said, he admitted he wasn’t doing it lightly and warned of some retaliation.
FTX CEO walks away from commitments
Lately, the crypto community has expressed displeasure that Bankman-Fried is backing the Digital Commodities Consumer Protection Act. This is a bill that attempts to regulate the cryptocurrency industry in the United States. The problem is that this proposal seems to give too much power to the Commodity Futures Trading Commission (CFTC), the US federal authority responsible for derivatives markets.
After having suffered a plethora of criticism, the boss of FTX finally decided to align himself with the choices of the community. And this, despite its deep conviction that the standards set out in this project are correct and beneficial. He will therefore leave it to Crypto Twitter to decide on the measures to be taken soon.
“It’s not up to me to make the decision – it’s up to the community. So I won’t oppose the community strategy, even though I think it’s not the most efficient way to achieve the goal”he said on Twitter.
Caution
Indeed, for Bankman-Fried, this proposal is a boon for the DeFi industry. Therefore, opposing it is not the best thing to do. Moreover, he justifies the hostility around these texts by a poor appreciation of the political and legal contours.
Moreover, he does not seem optimistic about the possible fallout when the community takes control of the situation. In fact, he fears that the mechanisms it will deploy will be counterproductive. That instead of stimulating the development of the ecosystem, they hinder it.
In these circumstances, it would seem that the head of the exchange does not wish to commit its relations and its resources to support the future device. “I will not actively support things that I think are backfiring on us”does he have added.
Today, the regulation of cryptocurrencies is a crucial issue for the development of the DeFi industry. However, it generates a lot of debate. If for some, this legal framework is superfluous, for others, on the other hand, it is a necessity. But it is still necessary to choose the right rules to adopt. Those that will satisfy both legislators, companies and users.
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