The crypto billionaire pitched a regulatory model for the industry in which participants are free to transfer crypto, run software infrastructure that validates transactions and write code without having to ask for permission—as long as they are not on a blacklist of sanctioned actors. (The Logic)

Talking point: Bankman-Fried’s proposal strikes a middle ground between crypto’s founding principles—namely censorship resistance and open access—and concerns from governments, regulators and law enforcement about crime and money laundering. The “permissionless” nature of crypto—in which anyone can launch a new token, decentralized exchange or other project without having to ask anyone first—has been lauded as a catalyst for innovation. That’s very different from how the traditional finance system works, to the chagrin of some fintech companies. On the other hand, the combination of permissionlessness and pseudonymity in crypto can lead to situations in which known criminals are in charge of important projects. Bankman-Fried’s middle way immediately attracted criticism from some players in decentralized finance, who are concerned the tradeoffs aren’t worth it.