FTX CEO Sam Bankman-Fried Says Regulation Could Prevent Next Crypto Contagion
FTX CEO Sam Bankman-Fried said tighter regulations could prevent the next 2022-style crypto crash.
In a new interview with FTX Podcast, the crypto billionaire said that while centralized digital asset firms like Three Arrows Capital or Celsius have felt a lot of pain during this year’s market downturn, decentralized finance (DeFi) ) performed quite well.
On-chain transparency in DeFi may have rescued the digital asset sub-industry during the last crash, and transparency created by regulatory oversight may prevent the broader crypto market from collapsing again, he said.
“I think one of the things that’s worth noting is that when you look at these decentralized versions, they actually didn’t have a big problem during the recent crash because many of the assets that backed which loans were transparent. That’s very Great help, so I think some regulation of asset-to-loan ratios will help ensure that these lending platforms operate in a responsible manner.
I think some of these issues have been brewing for a long time before they finally surfaced, so I think just a little oversight and transparency I think will actually help you a lot.
Other than that, I think just finding a space, for those who are looking for it, regulatory clarity, or if there is a clear way to register a product, would help a lot, because right now, if it’s not even clear how to register , then you get a lot of unregulated unregulated products. “
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