Sam Bankman-Fried a.k.a SBF, CEO, and founder of trading platform FTX reflected on the growth of the crypto industry in 2021 and shares his expectations for the new year in his detailed post. Through a series of tweets, the exec at first talks about how the digital asset industry has an edge over the legacy institutions in terms of large userbase, smart contracts, varied use cases, etc but still have few lingering issues such as lack of regulatory clarity, limited transaction scalability that needs to be taken into considerations moving forward.
At the beginning of the post, Sam Bankman points out the uneasiness between industry and regulators who are often at loggerheads as seen in several cases around the world. The exec noted,
“On one hand, it’s not clear what the process is for token issuance, platform registration, and stablecoins in many jurisdictions. This makes it hard for the industry to move forward as securely, and hard for institutional players to get involved. On the other hand, many regulators have found it very difficult working with crypto companies: instead of working collaboratively, we’ve seen a ton of examples of tension boiling over.”
Next, he weighs on the blockchain scalability which the exec thinks is inadequate at the current pace of 50k TPS as industrial-scale applications often require millions. And, while digital assets hold huge promise for payments, SBF laments, in reality, very few are done with them today. That being said Sam Bankman put forward a few proposals for the coming year.
Sam Bankman-Fried’s key focus for 2022
Starting off, the Chief Exec insists that the need of the hour is to work in collaboration to effectively address the existing regulatory gaps while at the same time allowing liquidity to move to places like the US, or to Europe, and other jurisdictions. Stablecoins for that matter presents the perfect use case in this context.
According to SBF, the key focus should be to ‘create a reporting/transparency/auditing-based framework to ensure they are backed as they say they are. This would solve 80% of the issue while allowing stablecoins to thrive onshore’. Secondly, there should be standard markets oversight, in a unified regime that creates similar standards for spot, futures, etc. And third, a disclosure, registration, and anti-fraud-based regime for token issuances.