Conversation

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?

Quote Tweet

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

Show this thread

108

903

Replying to

and

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.

Replying to

and

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.

Replying to

and

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.

Replying to

and

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

Replying to

and

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?

Replying to

and

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)

12:37 PM · Apr 26, 2022Twitter Web App

Replying to

and

It's great to hear that you're open to the SEC regime. I encourage you to release a white paper about what changes should be made to the securities regulations to get blockchain trading to work. 1/

Replying to

The fight has been over the Howey Test, but since some tokens are clearly securities, we need to figure out how to make trading work. How do we reform Reg NMS and others so FTX can register and operate as a crypto securities exchange? 2/2

Show replies