Former FTX.US president Brett Harrison says the collapse of the exchange he once worked for offers some lessons on how to avoid the next crypto disaster.
In a new interview with Scott Melker, Harrison says the need for more independent oversight is one of the most important lessons he learned from the FTX collapse.
“A few high-level lessons. Obviously we’re going to ignore the whole fraud aspect which was just appalling and shocking and it certainly raises questions about not how you prevent fraud because criminals will always find a way but more about what kind of systems you can use to properly to supervise. The people working on proof-of-reserve or proof-of-solvability protocols, I think that can be extremely helpful [and] have independent agencies that oversee centralized entities in the crypto space.
DeFi (decentralized finance) has so much promise because it’s a way to provide a truly transparent execution and custody that anyone can see and anyone can audit.
As long as we will have a world where there are centralized actors and digital assets that essentially function as brokers – they really are, they hold dollars on behalf of clients and execute orders on behalf of clients – those should be regulated and monitored in principle and controlled by brokers and that should be something different than DeFi. But I think that would be a huge help in regaining confidence in the world of digital assets.”
Harrison also says he realizes the importance of creating decentralized products when users have more control over their own information.
“Some personal classes are trying to build products and services that are more or less decentralized. I don’t mean that necessarily in a blockchain sense, I mean more that the customer retains as much control as possible over their own information.
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