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shit on asset classes you don't like all you want--but make sure to check what's in your back yard don't like the fact that some tokens don't have much of a use case? (though, to be explicit, many do!) well how about stocks that aren't building, *and* burn $3b/year?

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Joe Weisenthal

@TheStalwart

Apr 26

While everyone was talking about his description of yield farming, I thought SBF's description on the podcast of how VCs operate was absolutely devastating. I posted the relevant part in today's @Markets newsletter: bloomberg.com/account/newsle

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Sam, the difference is compliance with securities laws. If VCs want to put money into crappy investments, fine, but retail investors need protection in the form of disclosures and anti-fraud laws.

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I doubt Sam would disagree with you? I don’t get the impression that FTX is fighting regulation when it fits. They own regulated exchanges. Also, he’s right. Look at all of the zombie penny stonks out there.

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FTX's pushing for the CFTC to be the crypto regulator, and unless Congress duplicates the '33 and '34 Acts, there will be less disclosure than is required under current law. The securities laws fit crypto just fine, and Sam's fighting it.

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we would love to see digital asset disclosures and anti-fraud! we've started preemptively drafting up certification processes for FTX while waiting for a federal system: ftxpolicy.com/disclosure-and

12:28 PM · Apr 26, 2022Twitter Web App

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No need to wait for a federal system, since we have one already. It's the securities laws that have been around since the 1930s. Why not work within that system instead of trying to create a new one with fewer protections for retail?

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Might need a few tweaks (as evidenced, in part, by the fact that no major cryptocurrencies have successfully done so) which I'd love to see happen! also some aren't securities; less obvious how they'd fit in (but not necessarily impossible)

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I'm not sure we actually disagree so much on the goals here, or what's important? Possibly on details of implementation. twitter.com/SBF_FTX/status It's important to get federal oversight soon. I'm happy with either dep't doing it; whichever gets there first!

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SBF

@SBF_FTX

Apr 26

1) Towards a better financial ecosystem

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caveat emptor is the norm for CFTC, so increasing disclosure makes sense if more retail gets involved. doesn't have to duplicate '33 and '34 Acts because risks are different. but FTX policy is too CFTC-centric, what about digital asset securities, DeFi lending, NFTs?