Episode 87 of Season 4 of The Scoop was recorded live with The Block's Frank Chaparro and FTX US President Brett Harrison.
Back in July, the SEC launched an investigation into Coinbase for allegedly listing several tokens that should have been listed as securities.
Yesterday, SEC Chair Gary Gensler made comments that indicate he believes more crypto exchanges and broker-dealers are still in violation of guidelines put in place under former SEC Chair Clayton in 2017.
In this episode of The Scoop, FTX US President Brett Harrison shares how FTX US is striving to avoid regulatory issues, and why regulatory clarity in the digital asset space will lead to more domestic innovation in the US.
According to Harrison, the onus of “deciding what to list is on the exchange.. but that doesn't necessarily prevent future enforcement if the regulatory agency in this case disagrees.”
Given this dynamic, FTX US lists a limited number of tokens out of an abundance of caution. As Harrison explains:
“We have fewer than 30 tokens on our exchange, and we think that's fortunately or unfortunately the long term play that will work for us until there is better clarity in terms of what registration is going to be required.”
Although FTX US is not currently listing a broader selection of tokens, Harrison does believe many crypto projects would gladly register with the SEC if a clear framework existed:
“I think a lot of token projects would register and quite happily do so if there was a clear process for it, because they want to get listed on US exchanges, they want to be able to operate their company in the US without worrying about enforcement action down the road — they would like for their tokens to have security like properties.”
During this episode, Chaparro and Harrison also discuss:
- How Coinbase and FTX US are building for different kinds of customers
- Why the line dividing crypto retail and institutions is getting “blurrier”
- Harrison’s personal management philosophy
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Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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