FTX’s SBF Seeks Federal Oversight On Crypto After Coinbase Incident

The U.S. Securities and Exchange Commission (SEC) has been a target of many crypto leaders and experts over its consideration of the nature of a “Token”. However, FTX Chief, Sam Bankman-Fried also expressed his view on this issue.

FTX’s chief take on nature of tokens

SBF was sharing details on how the FTX margin engine works and the structure they are proposing in the US. He mentioned a report on how Germany proposed only allowing futures with the pre deposited margin.

Amid this Twitter thread, Alex, a journalist asked about SBF’s stand on the ‘many tokens actually being security’ query.

To this FTX chief wrote that there are tokens that are securities and tokens that are not. He added that by default SEC will take those used for issuances. While CFTC will take on those that aren’t. However, he is flexible about that.

He concluded by saying that “in the end, He wants Federal oversight of crypto one way or another”.

Meanwhile, the FTX, on its way to acquiring drowning firms due to the recent crypto collapse, announced that they are willing to provide liquidity to customers of Voyager Digital. As per the proposal, Voyager’s customers will get the opportunity to start a new account on the FTX platforms.

SEC lists 9 cryptos as a security

SEC in a recently filed complaint alleged that around nine digital assets listed on Coinbase, a crypto exchange platform were a “security”. The agency also claimed that the exchange’s product manager was involved in insider trading. He gave tips and details about the future listing of cryptos to his brother and one of his friends.

However, the SEC accused that this activity helped the alleged individuals to gain over $1.1 million.

The commission listed AMP (AMP), Rally (RLY), Rari Governance Token (RGT), XYO (XYO), DerivaDEX (DDX), DFX Finance (DFX), LCX (LCX), Powerledger (POWR), and Kromatika (KROM) as the securities.

Responding to this complaint, Coinbase mentioned that they actively monitor illicit activities. While investigating the matter they identified 3 suspects and gave the details to law enforcement.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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