• Bitcoin
  • NFT
  • Binance
  • ETH
  • DeFi
  • Metaverse
  • IDO
  • Coinbase
  • Solana
  • ETF
  • FTX
  • GameFi
Newsletter
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
  • Home
  • Crypto News
  • Market
  • Learn
No Result
View All Result
CoinLive
No Result
View All Result
Home Crypto News

FTX CEO visits the White House as cryptocurrency regulation in the US is even now a massive challenge

189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

FTX CEO Sam Bankman-Fried and his legal policy crew met with White House policy adviser Charlotte Butash in May 2022, revealing a lot of unknowns in the grand ambition behind the exchange.

FTX CEO visits the White House as US cryptocurrency regulation remains a major challenge
FTX CEO visits the White House as cryptocurrency regulation in the US is even now a massive challenge

Continue to enhance the legal electrical power

FTX CEO Sam Bankman-Fried and his legal crew stopped at the White House in May 2022 as lawmakers in the United States debated no matter whether there really should be a Commodity Futures Trading Commission (CFTC) or a Commodity Futures Trading Commission (CFTC). ). and Exchange Commission (SEC) acts as the main federal industry regulator of the cryptocurrency marketplace.

Related articles

Hong Kong cryptocurrency exchange Hounax scammed users out of $15.4 million

Hong Kong cryptocurrency exchange Hounax scammed consumers out of $15.four million

November 27, 2023
New CEO Richard Teng wants to turn Binance into "a normal financial company"

New CEO Richard Teng desires to flip Binance into “a normal financial company”

November 27, 2023

This info is disclosed in Statistics on the number of visitors to the White House in May 2022. Data from Sam Bankman-Fried demonstrates that FTX CEO and FTX Director of Government Policy and Relations, Eloria Katz and Mark Wetjen, a former CFTC commissioner who now heads the FTX’s political crew, visited the web page and met with political advisors Charlotte Butash and Steve Ricchetti. The document does not detail the content material of the meetings.

It can be viewed that this is thought of a move to “make friends” with the US government to strengthen the FTX legal corridor. Just about two months in the past, the CEO of FTX also planned to “donate $ 100 million” to the up coming US presidential candidate. There have been a lot of reviews that the richest billionaire in the cryptocurrency marketplace will build a “super organization” to mobilize politics in the United States, but this rumor was denied by Mr. Bankman-Fried shortly thereafter.

The ambitious FTX proposal

On the other hand, Mr. Bankman-Fried’s go to to the White House comes when FTX presently has a proposal in advance of the CFTC to enable the exchange to present crypto derivatives trading right to end users without having obtaining to go by the system. , initially announced in March 2022 by the president of FTX. United States Brett Harrison.

two / FTX US Derivatives’ latest DCO license designation needs complete collateralisation of derivative positions. Our request to the CFTC is to modify this designation to enable direct margin to the consumer (each retail and institution).

– Brett Harrison (@Brett_FTX) March 10, 2022

To clarify the FTX proposal, we ought to initially realize that futures trading is carried out applying leverage, i.e. traders do not place a hundred% of the contract worth when coming into the trade translation, but alternatively only place a smaller portion of the original deposit. . Using leverage increases threat, as traders can eliminate their original investment a lot of instances more than.

CFTC-regulated derivatives clearing organizations (DCOs) will assist handle this threat with “clearing” contracts, ie by acting as the counterparty to every single contract. DCO members are CFTC regulated brokers, identified as futures commission sellers (FCMs). FCM accepts futures trades on behalf of its customers, collects margin and information it with a DCO. Therefore, a DCO bears the direct credit score threat of its MMF members and MMFs bear the credit score threat of their customers.

Next is the proposal that FTX asks to modify its registration to enable the exchange to supply direct accessibility to clearing Bitcoin futures contracts. If accepted, it usually means that traders will no longer have to go by FCM to trade BTC derivatives on FTX, but will be ready to do so right on the FTX platform.

FTX, as DCO, will as a result bear the direct credit score threat of Bitcoin futures traders. To handle this threat, FTX proposes a model that immediately calculates margin demands on a 2nd-by-2nd basis, 24 hrs a day, seven days a week and 365 days, immediately liquidating the underwriters’ portfolio. with servicing margin demands or the whole portfolio is liquidated.

In concept, this authentic-time margin prevents traders from accumulating bigger and bigger losses. To the extent that FTX’s purchase guide is unable to system settlements due to automated settlement margin demands, FTX proposes to call for reserve liquidity suppliers to accept this kind of orders. Finally, FTX will set up a ensure fund that will cover any losses not incurred by members or liquidity suppliers.

By getting rid of MMFs as brokers or intermediaries in the Bitcoin futures industry, FTX removes an significant layer of investor safety. It is unclear no matter whether and how FTX assures traders are entirely informed of the hazards concerned in futures trading, especially for a volatile underlying asset, this kind of stocks, as very well as clarifying any doubts about the potential to manipulate the exchange.

Is FTX placing stress on the CFTC?

And until finally May 2022, the CEO of FTX had to participate in a discussion held personally by the CFTC in Washington with the participation of a lot of “professional” organizations in the area of derivatives, this kind of as CME Group to go over the over proposal as very well as negotiate the growth of the sector.

Information: CFTC Announces Staff Roundtable on Non-Brokerage. Get the facts: https://t.co/UYxUBfu4q1

– CFTC (@CFTC) April 27, 2022

As a outcome, most of the organizations participating in this meeting had opinions towards FTX. CME Group CEO Terry Duffy stated that if the CFTC identified an agreed resolution to the FTX request, it would jeopardize the industry.

Several other representatives also voiced their considerations about FTX’s use of automated liquidity to reply to industry stresses in authentic time. Gerry Corcoran, CEO of RJ O’Brien & Associates, also named the adoption of these liquidations a “weapon of mass destruction” that “would build a flash cycle of potent results for traders.

However, it is not nonetheless identified when there will be a CFTC choice on the FTX proposal. However, Mr. Sam Bankman-Fried’s go to to the White House will absolutely be the engine for “putting a lot of pressure” on regulatory approval.

Synthetic currency 68

Maybe you are interested:

Maybe you are interested:

Tags: BigCEOChallengeCryptocurrencyFTXHouseRegulationvisitsWhite
Share76Tweet47

Related Posts

Czech PM Faces Crisis Over €40M Bitcoin Donation

by shark
June 5, 2025
0

Bitcoin donation from criminal figure sparks political crisis for Czech PM; implications remain under scrutiny.

Matrixport Reevaluates Strategies Amid BTC Dominance Concerns

by shark
June 5, 2025
0

Matrixport reviews strategies as Bitcoin maintains dominance and altcoins face market challenges.

Bitcoin Set for Retest of $100K Support

by shark
June 5, 2025
0

Bitcoin retests $100K support amidst institutional focus. Key psychological levels challenge traders.

Aleo Advances Programmable Privacy in Blockchain

by shark
June 5, 2025
0

Aleo, led by founder Howard Wu, pioneers programmable privacy and advances zero-knowledge smart contracts in blockchain technology.

Chinese Businessman Kidnapped and Ransomed via Cryptocurrency

by shark
June 5, 2025
0

Guo Congyuan, a prominent Chinese businessman, was kidnapped in the Philippines in April 2025. The ransom was paid using cryptocurrency,...

Load More

Tags

analysis announces Bank billion Binance Bitcoin Blockchain BTC CEO Coin Coinbase Crypto cryptocurrencies Cryptocurrency DeFi ETH Ethereum Exchange Finance FTX fund game General News Information Investment Latest Launch launches market Metaverse million Network News NFT platform Price project Protocol Review SEC Solana Token trading users wallet

Recent Posts

  • Czech PM Faces Crisis Over €40M Bitcoin Donation
  • Matrixport Reevaluates Strategies Amid BTC Dominance Concerns
  • Bitcoin Set for Retest of $100K Support
  • Aleo Advances Programmable Privacy in Blockchain
  • Chinese Businessman Kidnapped and Ransomed via Cryptocurrency
  • Singapore Restricts Overseas Crypto Operations Amid Regulatory Shift
  • World Liberty Financial Airdrops 47 USD1 Stablecoin
  • 2025’s Top Crypto Projects: Aptos, Hedera, Ondo, and BlockDAG Make Big Moves!
  • About
  • FAQ
  • Contact Us
  • IGO
  • Altcoin
  • Terra
  • Launchpad
  • P2E
  • META
  • AXS
Email us: [email protected]

© 2021 CoinLive - Crypto News 24/7

No Result
View All Result
  • Home
  • Crypto News
  • Market Analysis
  • Learn

© 2021 CoinLive - Crypto News 24/7