FTX (a crypto exchange) has published a paper to recommend some alterations to the United States regulations for the provision of enhanced flexibility. The respective document suggested ten principles.
FTX wishes for the option of Primary regulator
The exchange has emphasized the crypto regulation, by the publication of a document that provides some changes for the regulatory policy of the United States. Fundamentally, FTX recommends that the provision of choosing a single chief regulator should be made available to the exchanges. It added that many people know that the CFTC is considered to be the commodity derivative-related marketplaces’ foremost regulator, while the U.S.-based SEC (Securities and Exchanges Commission) deals with the marketplaces of cash securities.
Though a few exchanges incorporate both derivatives trading as well as spot trading, it is suggested by FTX that a framework should be developed to permit an exchange to specify a single market regulator to function as its main regulator.
The current method would certainly be beneficial to the exchange itself, having its operations incorporating both the derivatives exchange as well as the spot exchange. The remaining of the exchange’s principles is related to the subjects like assets’ custody, KYC/AML, customer protection, and risk assessment along with the other trivial matters linked to the compliance of regulations.
It is noteworthy that a section in the document is devoted to the regulation of stablecoins, a subject that has been commented on by FTX previously. The exchange recommends for the regulators to maintain a record of the stablecoins that are registered and make sure the regular audit of the respective stablecoins through an accounting company.
Coinbase presents an analogous request
A competitor exchange of cryptocurrency named Coinbase presented an analogous document during October. The exchange, in this respect, suggested a collective method for the regulators, nonetheless, it recommended that the government of the United States should construct just one regulator instead of permitting the exchanges to move towards their favorite one. The respective news is witnessed because both Coinbase and FTX are ordered to testify in front of Congress in the next week.
Currently, it is not yet confirmed whether the regulatory reforms’ subject will be pondered over in the respective meeting. Presently, FTX is known as the fifth biggest exchange of cryptocurrency with a volume of up to $4 billion during the recent 24 hours. The derivatives exchange thereof is considered to be the 2nd biggest among the others with having $8B in the public interest.