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Sam Bankman-Fried, founder and Chief Executive Officer of FTX, has backed Christy Goldsmith Romero of the Commodity Futures Trading Commission (CFTC) on her idea of knowledge tests for derivatives trading. However, he said the concept should also be extended to other reading sectors. The comment is coming when the CFTC is preparing a complete upgrade of its regulatory framework for the crypto sector.
A Household Investment Section
Romero also called for the introduction of a household investment category that will offer additional consumer protections.
“Establishing a household retail investor category could give them more consumer protections,” Romero tweeted. “100% agree on disclosures, knowledge tests, etc.,” Bankman-Fried tweeted in response.
The billionaire added that knowledge-based tests and disclosure mandates for a wide range of intermediaries could make sense.
His statement is also coming at a time the FTX is planning to launch U.S. crypto futures. The company has already laid out plans for the proposed knowledge test for its US derivatives product.
There has been an ongoing debate on crypto-related consumer protections. The CFTC has also revealed that it will be taking a strong stance on crypto to make sure that the industry moves smoothly.
In line with CFTC’s plan, its Chair Rostin Behnam says the watchdog could take a more direct approach over marketplaces.
Behnam’s stance is also in line with the position held by the head of the Securities and Exchange Commission, Gary Gensler. He noted that the CFTC could have more authority over some digital currencies. Gensler was speaking at Georgetown University’s Financial Markets Quality Conference in Washington.
FTX Is Expected To Make Effective Updates
Meanwhile, Sam Bankman-Fried announced that there are plans for efficiency updates to FTX. The update will enable the platform to double its order while reducing latency.
In a series of tweets, he stated that the exchange is expected to provide various improvements to its matching engine over the next month.
The exchange will also launch lower latency API, and a new order matcher, as well as other features that have been under development for more than a year. Sam Bankman-Fried said the platform is expected to “half the order of latency” and “double the order throughput.”
Read more: https://www.economywatch.com/sam-bankman-fried-backs-creation-of-knowledge-tests-for-derivatives