I think that paragraph is quite misguided. “Becoming much more risk averse” is a great way to stop doing anything at all because it’s passed through eight layers of garbage. On top of this, it’s not like “literally becoming the US federal government” and “not having any accounting or governance at all” are your only two options; this creates a sad false dichotomy. SBF was actively and flagrantly ignoring governance, regulation, and accounting. This is not remotely common for EA orgs.
Like, for the last couple of decades we’ve been witnesssing over and over again how established, risk-averse institutions fail because they’re unable to compete with new, scrappy, risk-tolerant ones (that is, startups).
“Good governance” and bureaucracy are, while correlated, emphatically not the same thing. EA turning into a movement that fundamentally values these over just doing good in the world as effectively as possible will be a colossal failure, because bureaucracy is a slippery slope and the Thing That Happens when you emulate the practices that have been used for centuries is that you end up not being able to do anything. I’d be very sad if this was our final legacy.
There is a pool of donors who make their decisions based on their own beliefs and the beliefs of individuals they trust, not “EA.” See this post.