FTX’s Bankman-Fried Pitches CFTC on Directly Clearing Customers’ Crypto Swaps

During the discussion, the existing industry structure was defended as “quite adaptive” against volatile situations by Sean Downey, executive director for clearing, risk and capital policy at CME Group, the world’s leading derivatives exchange. Downey also criticized any new system that would lean on algorithms over capital cushions, arguing that the former brings its own hazards. “We’ve seen that movie before, and in fact, we saw it very recently,” he said, referring to the recent meltdown of algorithmic stablecoin terraUSD (UST).