Sam Bankman-Fried Addresses Backlash Over Crypto Regulatory Proposal
Sam Bankman-Fried Addresses Backlash Over Crypto Regulatory Proposal
Bankman-Fried’s Framework Meets Resistance
Sam Bankman-Fried, founder of FTX, recently faced criticism from the crypto community after proposing a regulatory framework aimed at protecting customers and reducing DeFi hacks. The draft framework suggested creating "blocklists" to sanction transactions and proposed that the OFAC maintain a real-time updated list of sanctioned addresses. However, crypto enthusiasts argued that such measures could increase censorship, reduce decentralization, and harm the value of Web 3.0, potentially excluding the U.S. from the global crypto race.
SBF Clears the Air on the Framework
In response to the backlash, SBF took to Twitter to clarify his intentions. He thanked the community for their feedback and announced revisions to his proposal. SBF emphasized that the framework primarily targets centralized crypto venues, not DeFi developers, smart contracts, or validators. He explained that the core goal is to regulate centralized entities and address how they interact with DeFi. SBF acknowledged the concerns and admitted the framework is not perfect but believes regulation will evolve to create clearer pathways for crypto adoption.
On the Flipside
Meanwhile, FTX and Sam Bankman-Fried are under investigation by the Texas securities regulator for allegedly offering unregistered securities, potentially violating state law. This adds another layer of scrutiny to the company’s operations.
Why You Should Care
The pushback against SBF’s proposal highlights the critical role of regulation in shaping the future of crypto. As the industry evolves, balancing innovation with oversight remains a key challenge for stakeholders.
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