invezz.com
The debate about the future of cryptocurrency and its regulation is getting increasingly heated, as many pundits and stakeholders have voiced their opinion about this digital currency revolution.
FTX Chief Executive Officer, Sam Bankman-Fried was a guest at Monday’s episode of CNBC’s “Mad Money” where he discussed the way forward for regulation in the crypto industry.
Crypto Regulation Will Benefit The Industry
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Several stakeholders are faulting the idea of regulating cryptocurrency use, arguing that it will defeat the main purpose of their introduction. However, Sam-Bankman-Fried, considered the youngest cryptocurrency billionaire, has a different opinion.
He thinks the regulation of cryptocurrencies, will be very beneficial to the industry if the right steps are followed. He however faulted the present regulatory framework in the industry, adding that messy regulatory rules could do more harm than good in the industry.
Sam also opined that the idea for the industry to self-regulate itself could be the best regulatory strategy for cryptocurrencies and other digital assets.
Crypto Could Also See Massive Mainstream Adoption
Sam also opined that if the regulation of the crypto sector is done right, it could draw massive interest and adoption from the real estate sector and the mainstream in general. The present state of the industry has made people go back and forth regarding whether crypto is a security or not.
He added that the cryptocurrency industry needs to be at the level where they are well defined and equated with commodities and other assets. According to Sam, at that stage, it will draw massive adoption from companies and organizations that have been very skeptical about its use.
Crypto Assets Should Be Clearly Defined
Sam also mentioned the issues of burning and tokenization of crypto assets, which are properties that can guarantee stability in the industry. But the major problem for cryptocurrencies is the uncertainty regarding their use, which has not been helped by a lack of regulatory clarity in the industry. Sam also pointed out the decentralized nature of cryptocurrencies, which is one of its major benefits over fiat currencies.