SEC and CFTC cooperation is crucial to regulate the crypto space, says FTX CEO

The regulators in the United States are all working towards regulating the cryptocurrency market.

The CEO of FTX crypto exchange Sam Bankman-Fried said regulators in the United States need to work together to collectively regulate the cryptocurrency market.

In a recent interview with Blockworks, Bankman-Fried said the Securities and Exchange Commission (SEC) working with the Commodity Futures Trading Commission (CFTC) would make it easier to regulate the cryptocurrency market.

According to the FTX CEO, regulating the cryptocurrency space would boost the adoption of digital currencies in the long run. 

He added that if the agencies could agree on who is responsible for licensing cryptocurrency exchanges, significant progress could be made. He said;

“That alone would solve, like, 60% of the problem.”

Despite the lack of regulation in the cryptocurrency space at the moment, Sam Bankman-Fried believes that progress has been recorded over the past few months. He said;

“We’re not actually in a place with more federal oversight than we were in a year ago. We’re in a place where there are concrete proposals that could be enacted very soon that are being seriously considered.”

Regulators in various parts of the world are still trying to understand and regulate the cryptocurrency market.

The cryptocurrency market has recorded huge growth over the past few years. In November 2021, the total market cap reached $3 trillion for the first time. 

However, the market has been in a bearish trend for the past six months and the market cap now stands around $1.7 trillion.

Despite the recent bearish sentiment, market experts still believe that the prices of cryptocurrencies will recover. Bitcoin could set a new all-time high again over the coming years despite trading below the $40k mark in recent days. 

Sam Bankman-Fried is confident that the United States regulators will find a way to properly regulate the cryptocurrency market over the next few years.