• The FTX Crypto Exchange has proposed ten key principles for regulating the cryptocurrency market

  • The debate over crypto regulations in the United States is currently at its apex, and following Ripple, another popular crypto exchange platform, FTX, has released a set of principles to assist Federal agencies in regulating the crypto market. FTX published a blog titled “FTX’s Key Principles for Market Regulation” that included ten key proposals that could be implemented in various crypto markets.

    The FTX proposal also comes after Maxine Waters, Chair of the House Committee on Financial Services, invited Crypto CEOs to testify before Congress on December 8. According to an earlier announcement, Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chas Cascarilla, Stellar Development Foundation CEO Denelle Dixon, and Alesia Haas, the CEO of Coinbase Inc. and the chief financial officer of Coinbase Global, will all attend the Congressional hearing.

    The FTX crypto exchange’s 10-key principles are not legislation proposals, but rather an overall perspective on how policymakers should approach regulations for the digital assets market. According to the official blog,

    “FTX does not propose specific legislation here, but rather principles and recommendations that could be reflected in policymaking, whether through legislation, rulemaking, or other regulatory action.” Many of these principles are familiar to traditional securities and derivatives markets, but others reflect market-structure decisions made by FTX and other crypto-platform operators that we believe result in superior outcomes for investors and the general public. As a result, FTX believes that public policy should not only allow these choices, but also encourage those that lead to such outcomes.

    The proposal’s ten key principles are as follows:

    • Proposing a single primary market regulator with a single set of rules for spot and derivatives listings.
    • Key Functional and Disclosure Requirements for Full-Stack Infrastructure Providers and Maintaining Market-Structure Neutrality Custody of Crypto Assets
    • Full-Stack Market Infrastructure Providers and the Trade Lifecycle – Addressing Risks Related to Token Issuance and Asset Servicing, Orderly Markets and Trade Settlement, Cross Margining and Position Risk Management
    • Providers of Trading Platforms – Ensuring Regulatory and Market Reporting Providing Customer Protection
    • Making Certain Financial Responsibilities Are Met
    • Making Certain That Stable Coins Used on the Platform Meet Appropriate Standards
    • Full-Stack Infrastructure Providers – Maintaining Adequate Cybersecurity
    • Safeguards Full-Stack Infrastructure Providers – Maintaining Anti-Money Laundering and Know Your Customer Compliance
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