- The Chief Executive Officer of FTX, Sam Bankman-Fried, along with Christy Goldsmith, the Commissioner of Commodity Futures Trading Commission, has accepted the profits of reports and knowledge tests for trading.
- However, both went to Twitter to clarify that they are not required to be crypto-specific.
Bankman-Fried has replied to those of the CFTC executive, who requested for the launch of a household retail investor category to give additional consumer protections.
“Launching a household retail investor category can give them much consumer protections. Such as, declaration written in such a way that normal people understand or could be used while estimating policies on the use of leverage,” Romero stated in his tweets.
In reply to the abovementioned tweet, Bankman-Fried wrote, “completely agreed on declaration, knowledge tests, etc.” He further added that these kinds of experiments do not need to be downgraded simply to digital currencies.
In line with Bankman-Fried, the disclosure mandates and knowledge-based tests for a broader perspective of mediators such as futures commissions merchants and can make sense.
The comments of the CEO regarding disclosure and testing correspond with the bid of FTX to introduce a U.S. crypto futures. However, FTX has so far defined an offered knowledge test for its U.S. derivatives product, the CEO clarifies.
As the discussions on the consumer protections associated with crypto and how policymakers must structure guidelines carries on ends, recently, CFTC gave signs it would not be lax towards crypto.
Behnam and Gensler
Commodities Futures Trading Commission Chair Rostin Behnam showed his willingness for more direct authority over marketplaces.
The position secured by Behnam falls in accordance with statements from Securities and Exchange Commission head Gary Gensler who showed the CFTC could have more authority on some specific virtual currencies in a speech at Georgetown University’s Financial Markets Quality Conference in Washington.
Behnam accepted that the CFTC would require many resources to achieve the suppositional expanded mission. The Stabenow-Boozman bill adds a user fee mechanism that will draw more funds to the CFTC, which always witnesses less funding from Congress than it appeals.
In line with Behnam, that will pay for growth in the market oversight tools that the authority can use.
“We need to update and develop our data infrastructure,” including AI bot and machine understanding for market observation and implementation, Behnam accepted.
Source: https://www.thecoinrepublic.com/2022/10/16/bankman-supports-knowledge-tests-for-trading-broad-range-derivatives/