Sam Bankman-Fried Backtracks on Crypto Regulatory Framework

“For Sam to suggest that the industry ‘should respect OFAC’ is unbecoming,” one adversary accused

article-image

Blockworks exclusive art by Axel Rangel

share
  • Industry members were quick to accuse the framework of being at odds with the founding principles of crypto
  • Sam Bankman-Fried is the fourth biggest political donor in the US, and he wants a say in how crypto is regulated

FTX CEO Sam Bankman-Fried is refining — and, in some cases, walking back — the crypto regulatory framework he dropped last week, which he acknowledged is a work in progress. 

Bankman-Fried last week published his take on how the crypto industry should be regulated. The document, dubbed the “Possible Digital Asset Industry Standards,” is a breakdown of how Bankman-Fried thinks the industry should operate, from sanctions policies to token classification. 

Crypto advocates were quick to critique the standards. Erik Voorhees, founder of ShapeShift, penned an open letter in response, arguing Bankman-Fried’s suggestions go against the founding principles of crypto. 

“For Sam to suggest that the industry ‘should respect OFAC’ is unbecoming,” Voorhees wrote. “Anyone genuinely advocating for ‘an open, free economy’ cannot support such blatant financial discrimination on millions of innocent people.”

Bankman-Fried responded by saying he sympathizes with “innocent people caught in broader blocks” of sanctions, “policy conversation worth having.”

Others were keen to criticize the proposal’s attitude toward decentralized finance. Twitter users largely agreed that placing DeFi projects in the same regulatory framework as centralized companies would be a mistake. 

“SBF is a great entrepreneur. But sadly, he is not the greatest advocate of DeFi and the crypto space,” one Twitter user said in response to the framework. 

In a Twitter thread Sunday, Bankman-Fried thanked adversaries for their “constructive feedback” — adding he would edit the original proposal as needed. 

The FTX head maintained centralized exchanges must take responsibility for offering products to users who understand the risks and are able to make informed decisions. 

“If you’re going to gate products on regulated exchanges, do it on understanding, not wealth,” he added, highlighting the notion that traders’ capabilities should not be determined by net worth. 

The guidelines and response comes as US midterm elections inch closer. The industry is keeping a close eye on candidates that could advance digital assets. Bankman-Fried in particular has been quick to open his wallet. 

At the beginning of the year, the FTX head ranked fourth out of all US election mega-donors, with a total contribution of more than $39 million, according to Federal Election Commission data and Open Secrets. Bankman-Fried once said he could donate up to $1 billion during the 2024 election cycle but has since backtracked.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

Layer 2 network Taiko integrates Chainlink Data Streams to deliver reliable onchain market data for DeFi and institutions

by Blockworks /
article-image

The license will allow Bullish to operate in New York under strict digital asset rules

by Blockworks /
article-image

The derivatives giant expands crypto offerings with new Solana and XRP futures options, pending regulatory review

by Blockworks /
article-image

Nasdaq-listed firm to fund Solana token purchases and expand its blockchain-focused treasury strategy

by Blockworks /
article-image

The partnership deepens liquidity and lowers conversion costs as demand for regulated stablecoins grows worldwide

by Blockworks /
article-image

Any indication the FOMC is less dovish than anticipated could weigh on crypto, industry watcher says