Gary Gensler Open to FTX Exchange Revival under Strict Legal Adherence Amid Ownership Battle
Summary:
U.S. Securities regulator chief, Gary Gensler hints at a potential revival of the defunct crypto exchange FTX, provided the new leadership obeys legal guidelines. This comment comes in response to former NYSE president Tom Farley's rumored intent to buy FTX. The exchange, initially founded by convicted fraudster Sam Bankman-Fried, went bankrupt and has other contenders for ownership, including Fintech startup Figure Technologies and cryptocurrency venture capital company Proof Group. Meanwhile, Gensler also emphasizes the rampant fraud issue within the crypto industry and the need for increased vigilance.
In an open dialogue concerning the potential of reviving the embattled crypto exchange FTX, the head of the U.S. securities regulatory body, Gary Gensler, conveyed he would not object provided the entity's fresh leadership strictly adheres to legal parameters. Prefacing his views with Tom Farley - the previous New York Stock Exchange president who is speculated to acquire the defunct cryptocurrency exchange initiated by Sam Bankman-Fried, a confirmed swindler - Gensler advised law-abiding operations within the sector. Echoing his guidance shared during the November 8 DC Fintech Week discussions captured by CNBC, he emphasized the need for fostering investor trust, securing clear disclosures, and curbing any malignant practices such as opposing clients' trades or misappropriating their crypto possessions.
As the present head of the Bullish crypto exchange established in 2021, Farley is amidst two other contenders - fintech outfit Figure Technologies and the cryptocurrency venture capital company Proof Group. A report released by the Wall Street Journal on the same day, using unnamed insider information, suggests these parties are positioned to purchase FTX. The assumption is that the triumphant bidder will reestablish the exchange following its projected bankruptcy withdrawal in the upcoming year.
In other matters, referencing Bankman-Fried's guilty ruling, Gensler conducts a reality check by stressing the prevalent existence of fraudulent activities within the crypto domain. He recommends instensified vigilance to protect unsuspecting investors from such unethical behaviours, alluding to actors misappropriating crypto assets for illicit intentions or disobeying international regulatory orders.
In related developments, despite the SEC's persistent monitoring of crypto operations, congressman Tom Emmer contends that the commission and Gensler have overlooked major failures like FTX, Terra-LUNA, Celsius, and Voyager earlier in December causing significant losses to crypto investors. However, Emmer's assertion that Gensler facilitated Bankman-Fried's uncontested dominance within the crypto market was unsupported by corroborative proof.
Amid ongoing legal disputes with entities like Binance, Coinbase, Ripple over supposed securities violations, and Grayscale on its application to morph its Bitcoin Trust into a Bitcoin exchange-traded fund, the SEC's ongoing regulatory efforts continue.
Published At
11/9/2023 6:00:41 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.