Friday, December 9, 2022
 

SBF Comments on SEC Chairman Gary Gensler’s Support of CFTC

  • Gary Gensler had announced his positive opinions about handing more power to CFTC earlier yesterday.
  • CEO of FTX, SBF expressed his outlook on the recent developments.
  • CFTC could oversee non-security tokens and SEC, the security tokens.

Sam Bankman Fried (SBF), the founder and CEO of FTX, tweeted his comments on CFTC being considered to be the primary crypto regulator rather than SEC. The tweet was based on SEC Chairman Gary Gensler’s proclamation regarding a long-lived debate over the authority to regulate crypto.

On Thursday, Gensler, who headed the CFTC from 2009 to 2014, expressed his consent in handing more authority to “SEC’s sister markets regulator” to regulate certain cryptocurrencies such as Bitcoin.

In detail, Gensler expressed his support in Congress about handing over the authority to CFTC “to regulate crypto non-security tokens and related intermediaries” and for the SEC to regulate “the crypto security tokens and related intermediaries”. He stressed the point that SEC would pursue oversight on tokens that are “securities”.

Meanwhile, SBF reflected on Gensler’s claim, stating that it looked like CFTC would regulate spot plus futures for non-security tokens while SEC would regulate spot plus issuance of tokens that are securities. In one of posts, he writes:

I think this is all pretty reasonable; and a resolution providing regulatory oversight along these lines would be healthy for consumers, protect against risk, prevent scams, give clarity to the industry, and allow liquidity to come back to the US.

Though there were some previous comments from SBF about the “mutual tension” between the digital currency sector and SEC, his recent tweet disproves his own assumptions. Overall, the Twitter thread suggests that SBF considers the new developments in a positive light. The crypto community also supports his views.

  • Gary Gensler had announced his positive opinions about handing more power to CFTC earlier yesterday.
  • CEO of FTX, SBF expressed his outlook on the recent developments.
  • CFTC could oversee non-security tokens and SEC, the security tokens.

Sam Bankman Fried (SBF), the founder and CEO of FTX, tweeted his comments on CFTC being considered to be the primary crypto regulator rather than SEC. The tweet was based on SEC Chairman Gary Gensler’s proclamation regarding a long-lived debate over the authority to regulate crypto.

On Thursday, Gensler, who headed the CFTC from 2009 to 2014, expressed his consent in handing more authority to “SEC’s sister markets regulator” to regulate certain cryptocurrencies such as Bitcoin.

In detail, Gensler expressed his support in Congress about handing over the authority to CFTC “to regulate crypto non-security tokens and related intermediaries” and for the SEC to regulate “the crypto security tokens and related intermediaries”. He stressed the point that SEC would pursue oversight on tokens that are “securities”.

Meanwhile, SBF reflected on Gensler’s claim, stating that it looked like CFTC would regulate spot plus futures for non-security tokens while SEC would regulate spot plus issuance of tokens that are securities. In one of posts, he writes:

I think this is all pretty reasonable; and a resolution providing regulatory oversight along these lines would be healthy for consumers, protect against risk, prevent scams, give clarity to the industry, and allow liquidity to come back to the US.

Though there were some previous comments from SBF about the “mutual tension” between the digital currency sector and SEC, his recent tweet disproves his own assumptions. Overall, the Twitter thread suggests that SBF considers the new developments in a positive light. The crypto community also supports his views.

 

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