SEC Chair Considers Revival of FTX Under New Management
If you’re a keen follower of crypto news, you’ll be interested to know that SEC chair Gary Gensler is open to the idea of reviving FTX, provided its new management operates within legal parameters. This comes after revelations that Tom Farley, ex-president of the New York Stock Exchange, might be looking to acquire the now-bankrupt exchange previously led by Sam Bankman-Fried, who has been convicted of fraud.
Speaking at DC Fintech Week on Nov. 8, Gensler advised potential market entrants to gain investor trust through transparency and compliance with the law. He emphasized the importance of proper disclosures and avoiding conflicts of interest. The successful bidder could relaunch FTX post-bankruptcy, with plans for the exchange to emerge from its financial woes next year.
Congressional Debate Over SEC’s Regulatory Scope
On the same day Gensler spoke, U.S. Representative Tom Emmer criticized the Biden Administration and Gensler for overreaching in regulating the digital asset industry. Emmer’s amendment seeks to prevent the SEC from funding enforcement actions related to digital asset transactions until Congress grants explicit regulatory authority over this asset class to the SEC.
Emmer has been vocal about the SEC’s perceived failures within the crypto sector and has insinuated that Gensler may have inadvertently facilitated a regulatory advantage for Bankman-Fried before FTX’s downfall, although these claims remain unsubstantiated.
Hot Take: FTT Sees 90% Surge in Value Following Gensler’s Remarks
The recent remarks by Gensler have introduced the possibility of a turnaround for FTX, eliciting a positive response from the crypto community. Following these developments, FTX’s native token, FTT, saw a 90% surge in value within 24 hours, with its price reaching $2.38 and its market capitalization climbing to $740 million.
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