Jim Cramer Talks Crypto With FTX CEO

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Sam Bankman-Fried, founder and CEO of FTX, a cryptocurrency exchange designed for traders, told Jim Cramer during a recent episode of “Mad Money” that new financial instruments require sensible regulation if they want to fully enter into traditional finances.

When Cramer asked about crypto regulation, Bankman-Fried said it made perfect sense. He recently told Congress the same thing. He said the only way for crypto to really become mainstream and gain the trust of consumers is for users to know that regulators have created rules that protect their investments.

Bankman-Fried said regulators currently appear to be debating whether crypto is a currency, commodity, or security. But Bankman-Fried noted that in reality crypto acts like all three, which is why he proposes that instead of trying to classify crypto, the government should just write regulations that make sense.

Bitcoin’s share of the “store of value” market – gold and bitcoin – was recently estimated at 20% by Zach Pandl, Co-Head of Global FX and EM Strategy at Goldman Sachs, Stephen “Sarge” Guilfoyle a recently rated on Real Money. “I could argue that more than a plethora of investors rely on real estate and other durable assets as stores of value, but that’s not mentioned here. Neither do other cryptocurrencies,” Guilfoyle wrote. .

Bankman-Fried, 29, a crypto billionaire, is a news media favorite, for his youthful wealth as well as his lifestyle – from veganism to sleeping just four hours a night in bean bags, to passing through his dedication to altruism.

He told Cramer that FTX is a place for traders to buy, sell and hold their crypto assets. The company is currently based overseas, but has a US entity that domestic investors can use.

Turning to the plethora of new coins being created, Bankman-Fried again said that regulation would make a lot of sense. He said some of these new pieces are nothing more than memes, while others have purpose and make a lot of sense. Investors must make a difference.

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