Keading cryptocurrencies aren’t the only downside investments in 2022, says FTX CEO and co-founder Sam Bankman Fried.
“Everything is down this year because dollars are up this year,” Bankman-Fried said. Capital SkyBridge founder Antoine Scaramucci at the SALT conference this week.
Bankman-Fried, which reportedly bought a 30% stake in SkyBridge for $45 million, Underline that the stocks are also trading with a large Wall Street sell-off in 2022 alongside the major drop in cryptocurrency prices.
The prices of Bitcoin BTC/USD and Ethereum ETH/USD are respectively down 57% and 58% since the beginning of the year. The cryptocurrency market is now worth nearly $1 trillion. That’s a significant drop from the sector’s $2.8 trillion market capitalization last November.
Bankman-Fried blames the Federal Reserve for raising interest rates as one of the reasons risky assets have fallen in value.
“It doesn’t change the underlying or the fact that blockchain still has huge use cases in terms of financial settlement, in terms of payments, in terms of on-chain social media, in terms of other things” , did he declare.
Bankman-Fried’s comments come as SPDR S&P 500 ETF Trust TO SPY and SPDR Dow Jones Industrial Average ETF IAD are down 18% and 15% respectively since the beginning of the year.
Bankman-Fried on regulation: Another topic Bankman-Fried discussed with “The Mooch” was cryptocurrency regulation.
“One way or another, there has to be reasonable federal oversight of the industry,” Bankman-Fried said. “There has to be an agency or multiple agencies charged with policing the space.”
Bankman-Fried’s comments constitute a debate over whether the Securities and Exchange Commission (SEC) or the Commodities and Futures Trading Commission (CFTC) should handle oversight.
“The SEC and the CFTC are the two most natural places to do it,” the billionaire said. “They’re both going to have a role to play one way or another.”
FTX has been working with Congress to “draft legislation” on crypto oversight, Bankman-Fried said. Benzinga before reported that Bankman-Fried visited the White House in May in a move that could have involved meetings on cryptocurrency regulation.
“I’m optimistic that we will get a license,” he added. “I’m actually surprisingly optimistic that this will actually happen, that in a year there will be a bill for a framework for digital assets.”
Bankman-Fried is a leader in the cryptocurrency industry with FTX spending millions of dollars to take stakes in struggling crypto companies during the bear market.
Scaramucci is also a big proponent of digital assets. His SkyBridge fund made headlines when he started investing in cryptocurrencies. Around 16% of SkyBridge was in crypto before a sell-off reduced holdings to 8%. The firm currently has $2.8 billion in assets under management, but is down 25% this year, the Financial Times reported.