- CEO of ShapeShift and FTX CEO, SBF debate on proposed crypto regulations.
- “If DeFi front-ends catering to Americans need to be licensed, DeFi in America dies.” says Voorhees.
- Bankman-Fried stresses that he will not support regulation of decentralized finance.
Erik Voorhees, the CEO of ShapeShift, a cryptocurrency exchange, and Sam Bankman-Fried, the CEO of FTX exchange, participated in a debate organized by Bankless, a youtube channel specializing in crypto money and crypto finance. The debate organized by Bankless was center-staged around Bankman-Fried’s proposal for crypto regulation.
With regard to the debate, Romano, a crypto trader, and investor stated that Voorhees was manipulating SBF with a tactic called “loaded question.” Moreover, he stated that this act of Voorhees made SBF focus on a single issue rather than focus on the broader concept of regulation.
According to Ryan Sean Adams, the host of the debate, Voorhees’s main concern was the regulation of entities that build the websites, or front-ends, allow the average person to access DeFi.
Voorhees revealed his disappointment and commented, “If DeFi front-ends catering to Americans need to be licensed, DeFi in America dies.”
In addition, Voorhees stated that regulation of such entities should not be done. But if it was to be done, then Voorhees said:
And if you exclude 99% of people from open, permissionless finance, then all you’ve done is create a more complicated, more expensive TradFi system.
However, Bankman-Fried throughout the debate stressed that he would not embrace the regulation of decentralized finance. But he mentioned that whether we like it or not the regulation will come in the future.
Moreover, Bankman-Fried while stating about the regulation commented: “I’m optimistic that we will end up striking a balance, where [the DCCPA] will do a good job of providing a large ratio of customer protection to restriction of commerce.”
Nonetheless, Vorhees mentioned that he was skeptical that the lawmakers would craft net-positive regulations. He supplemented his statement by pointing to a New York law that requires would-be crypto exchanges there to apply for a “Bitlicense”.
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