Bankman-Fried Says Stricter Regulation of Crypto Exchanges Would Be Positive

FTX’s CEO said a ban on stablecoins would be “sad.”

Sep 20, 2021 at 10:03 a.m. UTC
Updated Sep 20, 2021 at 2:32 p.m. UTC

Sam Bankman-Fried, CEO of crypto derivatives exchange FTX, said tighter regulation of crypto exchanges would have positive effects for investors.

  • He made his comments as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) discuss stricter regulations and frameworks around crypto exchanges.
  • Controls on lending products “if done properly, these programs can be great for consumers; if done properly, they can give consumers way higher returns on their assets,” Bankman-Fried said in an interview with Bloomberg.
  • Bankman-Fried said a ban on stablecoins would be “sad” given how useful they are. “There’s other sorts of regulatory interventions, which I think would be healthy.”
  • FTX is also looking to increase its presence in the non-fungible token (NFT) market, with exchange executives revealing plans to build their own marketplace to compete with OpenSea, the market leader.
  • Brett Harrison, president of FTX.US, told Bloomberg the company is in a good position to launch its platform, with the infrastructure already built out.
  • He agreed that more regulation could be beneficial for crypto exchanges: “It’s a long time coming and it’s completely necessary – and we’re very much for it.”
  • The exchange said its own NFT platform could become available in about a month.

CORRECTION (SEPT. 20, 14:32 UTC): Fixes attribution on quote in sixth bullet point.

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Tanzeel Akhtar is a CoinDesk news reporter based in Europe.