FTX exchange offers its suggestions as the US moves towards crypto regulations
- As the US bringing the first real crypto-related laws, FTX came out with a document that proposes changes.
- The exchange’s main proposal is to allow trading platforms to select one of the two regulators.
- This will allow exchanges that deal with spot and derivatives trading to select the option that fits best.
The United States’ regulators have finally decided that it is time for the country to get some laws regarding the ever-growing cryptocurrency industry. However, while many in the industry are willing to accept any kind of rules, crypto exchange FTX seems to have come up with its own idea of what the regulated crypto industry should look like.
Not only did the exchange offer its own crypto regulations as a suggestion, but it does seem like its suggestions could provide the crypto sector with greater flexibility.
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The exchange published a document with its suggestions earlier today, proposing changes to the US’ regulatory policy. The first major rule that it proposes is providing the exchanges with the ability to select their own single primary regulator. The document points out that CFTC is in charge of commodity derivatives, while the SEC regulates cash securities.
Since some platforms deal with both, derivatives and spot trading, FTX’s suggestion is to allow the platforms to pick one regulator as their primary one. Being an exchange itself, this rule would likely be very beneficial to the FTX itself, especially as it operates as derivatives and spot exchange alike.
The rest of the proposals that the exchange offered are dealing with matters such as risk assessment, customer protection, custody, KYC and AML, or other common matters regarding regulatory compliance.
One noteworthy section deals with the matter of stablecoins, which FTX has commented on in the past, as well. The platform wants the regulators to create a list of registered stablecoins, make sure that they are properly and regularly audited, and reliable.
Interestingly, FTX is not the first to come up with the idea of proposing its own regulations in hope of the regulators accepting them. Coinbase published a similar document two months ago, in October. However, Coinbase simply recommended a unified approach to regulation, suggesting that the government create a single new regulatory body.