FTX issued a list of principles and proposals to help policymakers build the regulatory framework. The policy recommends the market-structure choices made by several leading crypto exchanges and suggests its execution across all authorities.
FTX shared the “FTX’s Key Principles for Market Regulation” blog after Maxine Waters, the chair of the House Committee on Financial Services, invited several CEOs of major crypto firms to testify on the topic of digital assets and the future of finance.
Out of the 10 key principles, one of the recommendations calls for an alternative regulatory approach that proposes a united regulatory regime for spot and derivatives marketplaces.
FTX also explains the need for a direct membership market structure, permitting entities to perform regulated trades without the involvement of a third party. The exchange also suggests a regulation demanding greater transparency around the custodians of crypto asset. The blog further demands frameworks for reporting transactional activity to avoid market manipulation and ensure customer protection. FTX also pointed out the need for regulating stablecoin issuance.
