2/ What we can expect in terms of regulation
SBF is known for his bullish views on regulation. In fact, he has been speaking with policymakers in Washington
🏛️ on an ongoing basis to help educate policymakers and advocate for a proper framework.
Stablecoins will likely be first out of the gate, something SBF thinks won’t be too difficult to pull off.
“On the stablecoin front, I think that’s a really important one. I also think it’s not one of the harder ones. Relatively speaking, there are fairly straight forward ways as a regulator to tackle stablecoin registrations. I think requiring audits is a very powerful first step … The biggest piece of this, is going to be looking at exchange licensing, particularly derivatives exchange licensing
. I think that’s probably going to be the most important — and most difficult — piece of this.”
SBF talked about the recent collapse of UST/LUNA
— a catastrophic event the industry is still very much recovering from
— and where Terra ran into problems.
He also shared his outlook for Canadian regulation 🇨🇦 including some of the challenges we face north of the border.
3/ How to strike a balance between regulation and innovation ⚖️
The million-dollar question. How to properly regulate the industry without stifling innovation is one of the more difficult, and nuanced, challenges that governments face.
According to SBF, in the beginning we’ll likely see some form of anti-money laundering (AML) compliance on the on-and-off ramps between the fiat world and crypto ecosystem.
We can also expect more on-chain monitoring, which does exist through organizations like Chainalysis
. SBF thinks overtime, we’re going to be faced with harder questions about what on-chain identity truly means. 🤔
“We’re going to start to see overtime, more general impact of crypto market structure on general financial market structure. And I think this goes beyond DeFi. [The] direct equitable access that crypto has traditionally had for markets is frankly really powerful and is something I expect will start to spread to other markets. And I think it’s healthy and powerful for it to do so.”
In crypto, all users are able to participate on equal terms, unlike legacy banking systems where people are prioritized based on their wealth and status.
As we contemplate the future of finance, it makes sense for traditional markets to mirror crypto in some aspects and adopt a more progressive and modernized approach. 🌎
Other topics we covered
SBF also touched on his 8% stake in Robinhood
, his overall investment strategy, advice for financial advisors when it comes to crypto and what’s next for his crypto empire, FTX. 💡
It was a great conversation and definitely worth checking it out
. If you’re wondering whether or not the 30-year-old crypto genius sleeps, the answer is yes, but not very much! 😜