The CEO of one of the biggest crypto exchange platforms FTX, Sam Bankman-Fried, expressed his opinion on the most promising blockchains on the market the day before. However, that wasn’t the only significant thing touched on in the conversation with the billionaire entrepreneur. In the same interview, Sam touched on another important topic: the regulation of digital assets. According to him, the ecosystem formed by the regulators is now ” on the razor wire “. What did he mean? Let’s get into the thick of it.
How should cryptocurrencies be regulated?
Sam shared his opinion on the most promising blockchains the day before. According to him, it was the Solana and Avalanche networks, which saw strong growth in 2021. In addition, Bankman-Fried highlighted the potential of tokens based on other blockchains.
As for the issue of regulation, it concerned Bankman-Fried himself only a month ago. Recall that in December, as president of one of the largest platforms in the industry, he presented a report on the prospects and difficulties of the development of cryptoassets to the United States Congress. At the same time, in a short interview, Sam admitted that the main event of 2021 for him was precisely the start of the formation of the infrastructure to regulate the crypto market.
The billionaire shared his thoughts on regulators’ activities again on the press edition’s gm podcast Decrypt. Here is one of his quotes in which Sam spoke about the current situation:
“It was very interesting to be at the forefront of the crypto industry and watch the formation of the digital asset regulatory process, and each of its parts. The cryptocurrency control ecosystem is on a knife edge in a sense, in many ways it will have a strong influence on the entire industry. »
Thus, the billionaire believes that in the future, the regulation of the field of cryptoassets will be strengthened. In addition, it is this sphere that will determine the future of the industry and its modern appearance after a while.
It should be noted that last year the exchange FTX moved from Hong Kong to the Bahamas, where regulators’ attitude towards cryptocurrency is more tolerant. Here’s what Sam thinks:
“The Bahamas indeed has a trained infrastructure to regulate cryptocurrencies. Such places on Earth are now very rare. Almost all regions of the world are in a state of uncertainty or disorder on this issue. »
Sam Bankman-Fried and his interaction with the US Congress
By the way, the report on the state of the crypto market to Congress left no negative impression on the billionaire.
“I always felt a bit patriotic, I think that’s the right word. I am a patriot even more than I would have imagined. »
Sam considers his interaction with the US Congress a “fruitful experience”. According to him, this meeting had exactly the meaning of giving officials in the country a general idea of the state of things in the crypto market. Recall that among them there are active bitcoin supporters like Senator Cynthia Lummis, who has repeatedly clarified the broad prospects for the crypto-asset industry.
Bankman-Fried hopes that over time, the United States will become more ” warm ” towards cryptocurrency. The expert continues:
“Over the past four years, most of the flow of funds into cryptocurrency has gone through offshore due to cryptocurrency regulatory issues. I am cautiously optimistic and I want to stress this “cautiously” . The development of the situation may in fact go in the opposite direction, contrary to expectations. I wouldn’t be surprised if, over the next couple of years, cryptocurrency regulation becomes so clear that the share of crypto transactions outside of theoffshore increased at least three times. »
In other words, if world governments want ” To keep “ crypto industry in sight, they shouldn’t put too much pressure on bitcoin or altcoins. Pervasive cryptocurrency bans and the fight against cryptoassets will simply bring a large chunk of financial flows into the shadow sector, which creates another problem for states.
We believe that Sam Bankman-Fried’s predictions will hold true and that regulation of the digital asset industry will become more active in the near future. Yet, the niche of digital currencies continues to grow at a breakneck pace and more and more people are associated with various blockchain projects. Naturally, the authorities will not want to leave the industry to chance once again, so they will be faced with creating rules for the operation of all cryptocurrency infrastructure.
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The blockchain offers so many possibilities! After NFTs and the metaverse, who knows what this technology can still offer us? This universe fascinates me and I love to read and write about it. I wish you as much pleasure while reading me!