Sam Bankman-Fried: The main reason for the recession in the crypto markets is the policy of the Fed

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The CEO of the FTX cryptocurrency exchange believes that his business now depends on the decisions that the American regulator will make in the coming months.

Sam Bankman-Fried said ininterview for NPR that the main driving force behind the recession in the cryptocurrency markets is the tightening of fiscal policy by the US Federal Reserve System (FRS). According to Bankman-Fried, FTX can, if not stop the decline in crypto markets, then at least slow it down:

“I feel that we have an obligation to seriously think aboutto intervene, even if it is at a loss for. We must stop the spread of infection. Even if we weren’t so closely associated with the cryptocurrency industry, I think we would have to do something that would benefit the ecosystem.”

According to the head of FTX, the main culpritThe recession is driven by the Fed due to its decision to raise the key rate by 0.75%, which is the largest increase since 1994. This had a domino effect that also reached digital currencies. When fiscal policy tightens, people start selling off what they consider risky assets, Bankman-Fried says:

“The markets are literally scared. People with money are afraid."

Businessman understands the complexity of whatthe central bank is trying to do: now the Central Bank is stuck between a rock and a hard place. But now he and many others in the industry are waiting for new decisions from the Fed to build a further course of action, Bankman-Fried says.

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Previously CEO of a crypto exchangeCoinbase Brian Armstrong announced the reduction of 1,100 staff. According to him, during the rise in the cryptocurrency markets, the exchange hired too many employees.