Sam Bankman-Fried (SBF) has written a set of suggested standards for the crypto industry “while awaiting full federal regulatory regimes,” which were posted on the FTX policy blog Oct. 19. The publication covers many of the questions facing regulators. and operators, with specific reference to the United States in some points. In particular, SBF outlined a plan to treat assets in the US with respect to their status as securities or commodities. FTX will implement its plan, SBF wrote.

In the United States, SBF wrote, FTX’s legal team will analyze assets using the Howey test, case law and guidance to determine whether an asset is a security or a commodity. Assets other than securities will be classified as commodities by default. It’s more:

“If we find an asset that could be a security, we will not list it in the US unless/until there is a process to properly record it.”

In addition, SBF supported the tokenization of shares in the traditional financial market for practical reasons. It also devoted considerable space to the need for client protection and advocated knowledge-based investor rating, as opposed to the income/asset-based rating system currently in place.

However, as Coinbase discovered, excluding assets that the exchange considers securities is no guarantee of peace with the US Securities and Exchange Commission (SEC). When that exchange came under scrutiny from law enforcement for alleged insider trading, the SEC added securities trading violations to the charges against the defendants. Coinbase Chief Legal Officer Paul Grewal denied publicly traded securities, saying “Coinbase has a rigorous process for analyzing and reviewing every digital asset before it is made available on our exchange, a process that the SEC itself has reviewed.” .

FTX is currently under investigation in Texas for securities law violations.

Related: ‘Secret Circulation’ Cryptocurrency Bill Could Be a ‘Boon’ for DeFi

While his entire blog post is a reaction to the lack of regulation in the cryptocurrency industry, SBF remained optimistic about future developments. “I’m optimistic, for example, that the Stabenow-Boozman bill would protect customers while also protecting economic freedom; and that federal regulators are moving towards thoughtful frameworks,” he wrote in the tweet dedicated to the document.





This post FTX will filter assets it believes to be securities from US stocks until registration is made

was published first on https://cointelegraph.com/news/sbf-ftx-to-filter-assets-it-thinks-are-securities-from-us-listings-until-registration-in-place

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