FTX will delist crypto assets in the US that it believes may be securities, according to CEO Sam Bankman-Fried
Crypto exchange FTX CEO Sam Bankman-Fried says his firm does not support certain digital assets in the US to avoid regulatory issues.
Bankman-Fried says that pending the establishment of legal frameworks that will define and categorize cryptoassets, his firm will try to determine which coins can be considered a security.
“Our legal team will do an analysis of the asset according to the Howey test and other relevant case law and guidance. If the analysis finds it to be a security, we will treat it as such.”
Bankman-Fried says the platform will not support tokens with the characteristics of a security and those considered by the US Securities and Exchange Commission (SEC) or an appropriate court as one.
“Ideally, we’d end up in a place as an industry where being a security isn’t a bad thing: where there are clear processes for registering digital securities that protect customers while allowing for innovation. We’re still excited to work constructively with regulators to develop and act within a regulatory framework for tokens that are securities.”
Bankman-Fried is making the statement as his company faces allegations of offering unregistered securities in Texas. In the midst of FTX’s investigation into the Texas State Securities Board’s enforcement division, the executive is pressing on idea to regulate the crypto space.
“At a high level:
a) we need regulatory oversight and customer protection
b) we need to ensure an open, free economy, where peer-to-peer transfers, code, validators, etc. are presumably free
c) we should establish regulation – and until then standards – to ensure (a/b)”
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Featured image: Shutterstock/Denis Starostin
