Far-west crypto: DeFi, tokenization, stablecoins… FTX’s shock proposals

Regulate yes, but well – Sam Bankman-Fried, founder of FTX recently made the Times top 100 and contributes to the evolution of the crypto ecosystem every day. He recently published a report giving a way forward for the regulation of the crypto environment. Open to discussion, this track covers 7 different topics. How to protect investors? How to better define and promote digital assets and tokenization? Should we better regulate DeFi and stablecoins?

Blocklist, 5-5 standard, and transparency, Bankman-Fried wants to secure and simplify the market

In his report released on October 19, 2022, Sam Bankman-Fried begins with his interest in block lists. According to him, they would be more effective than authorization lists.

The idea is to allow everyone to trade on the market and then to remove the bad guys. This is opposed to the systematic obtaining of an authorization. The main challenge would be to send the information to all the platforms effectively to avoid operations even after detection by the authorities. A solution that would facilitate scholarship work.

The CEO of FTX also wants the implementation of public hacker mailing lists allowing everyone to identify fraudsters and blacklist. He also issued the use of a standard 5-5. For him, when a hack takes place, it should – in an ideal world – that the hacker be encouraged to return part of his loot sufficient to repay all harmed investors. In doing so, the hacker does not harm the investors and allows theimproved security of the network. Otherwise, it is placed on the public list of people to avoid.

Regarding investors who place their funds on Defi platforms, an increasingly popular phenomenon, the boss of FTX offers systems of transparency and preservation of scams. Investors should haveinformation clear and comprehensive. At the same time, should the authorities also rage against the abuse of these platforms. Sam Bankman-Fried’s rule of thumb is that an investor should not be able to lose more than the funds he originally invested. He adds that the compensation system put in place by FTX should be the norm. For him, the best way to screen investors would be through knowledge test demonstrating the awakening of the investor to his risk taking.

>> Prepare for the next Bitcoin bull run by registering now on the FTX platform (trading link) <<

Clarified process and tokenization, improve financial processes

Regarding cryptographic assets, he believes it is necessary that a clear check-in procedure be put in place. This will clearly distinguish between transferable securities and other. In the end the client is better protected, and the stock exchanges reduce their evaluation work. Between the Howey test and other models of jurisdiction it is necessary to have resources and time.

1666330772 387 Far west crypto DeFi tokenization stablecoins FTXs shock proposals

Sam Bankman-Fried also presents his vision of the tokenization of financial assets. According to him, this is the future of financial markets. Indeed, a classic financial transaction can go through 15 intermediaries and sometimes last up to Several weeks. Many remain risks, and a potential loss of gain. The blockchain solves this, hence the importance of regulating and clarifying the processes.

Defi and stablecoins, Sam Bankman-Fried emphasizes their importance and frames

DeFi is for Sam Bankman-Fried essential for thecrypto financial innovation. We must at all costs avoid curbing it ineffectively.

Therefore, Sam Bankman-Fried proposes to request theregistration of easy-to-access DeFi platforms, actively marketing financial products. In this way, the most experimental processes can develop quietly. Thus, when they risk jeopardizing the funds of uninformed investors, they must make it a point of honor to regulate themselves.

Stablecoins are essential according to FTX

Regarding stablecoins, they are an opportunity dantesque democratization of payments. They must be seriously guaranteed, and identity issuers and buyers must be verified.

“Any stablecoin claiming to be stable against the US dollar should be backed by at least as many US dollars (or federally issued treasury bills) as there are stablecoin tokens in circulation and should maintain information and public and up-to-date audits that attest to this”.

Sam Bankman-Fried, CEO of FTX

Using a blocklist, a 5-5 standard, and more transparency, Sam Bankman-Fried wants to make the crypto market safer. In addition, on the future fund of the tokenization of the markets, he wishes to clarify the processes of definitions of assets with transferable value. Finally, he insists on the importance of DeFi for innovation while specifying certain limits. It relies on the essentialism of stablecoins as a means of payment to be securely guaranteed. This crypto-billionaire invites companies in the sector to discuss these ideas. Thus, they will be able to complete and direct the legislative will of the governments. To better understand this central character, read this article on his dizzying rise: behind the scenes of a dazzling success.

Take advantage of the opportunities to buy low-cost cryptos that the market offers us! To not miss the opportunity of a lifetime, register without delay on the FTX reference crypto exchange platform. In addition, you benefit from 8% compound interest with FTX Earn (commercial link, see conditions on official website).

We want to thank the writer of this write-up for this incredible material

Far-west crypto: DeFi, tokenization, stablecoins… FTX’s shock proposals

Visit our social media accounts as well as other related pageshttps://metfabtech.com/related-pages/