cryptoknowmics.com
U.S.-based crypto exchange FTX has released a crypto regulatory framework just weeks before the House Financial Services Committee hearing where CEO Sam Bankman-Fried is scheduled to appear. He will be joined by the executives from Paxos, Stellar, Coinbase and Circle on Dec. 8.
FTX Proposes Crypto Regulatory Framework
On Friday, FTX released its “key principles for market regulation of crypto,” blog post after Maxine Waters, the chair of the House Committee on Financial Services, invited several crypto leaders to testify on the topic of digital assets and the future of finance.
“The regulatory label on a given product or market need not change the core goals of regulation, and the same rulesets should generally apply across all markets,” the blog post reads.
With the issue of jurisdiction over crypto industry often at the top of mind for both regulators and industry leaders, the exchange argues for the creation of one central regulatory body with one set of rules for spot derivatives trading. It also explains the need for a direct membership market structure where entities perform regulated trades without the involvement of a third party.
“We expect that regulators likely will play an important role during that period and use the authorities they have to address the questions of how best to supervise the industry and its products. Congress likely will continue in a fact-finding mode for much of this period but part of that process will be engagement with the regulators as well as the industry,” Mark Wetjen, FTX US head of policy and regulatory strategy, said.
Stablecoins Should Meet Appropriate Standards
Additionally, FTX argues that regulators need to ensure that stablecoins meet “appropriate standards.” The blog further demands frameworks for reporting crypto transactions to avoid market manipulation and ensure customer protection.
The exchange also suggests a regulation demanding greater transparency around the custodians of crypto assets, arguing that the platform “users should be given visibility” into how custodial services plan to address concerns related to fraud and theft.