SEC Chair Open to Rebooted FTX Exchange Under New Leadership
The chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, has expressed openness to the idea of a rebooted crypto exchange FTX, but under the condition that its new leadership operates within the boundaries of the law. Gensler made these comments in response to reports that Tom Farley, former president of the New York Stock Exchange, is a potential buyer of the bankrupt cryptocurrency exchange founded by Sam Bankman-Fried.
Gensler emphasized the importance of operating within legal parameters, building investor trust, ensuring proper disclosures, and avoiding conflicts of interest. Farley, who is currently the CEO of cryptocurrency exchange Bullish, is among three bidders vying to acquire FTX.
3 FTX bidders in the Auction are:
Bullish – Crypto exchange run by Tom Farley
Figure Technologies – fintech start up and
Proof Group – crypto venture-capital firmThree bidders will be leading a consortium
— Sunil (FTX Creditor Champion) (@sunil_trades) November 8, 2023
The winning bidder could potentially relaunch FTX after it exits bankruptcy next year.
Crypto Industry Still Plagued by Fraudsters
Gensler also highlighted the prevalence of fraudsters in the cryptocurrency industry and stressed the need for greater efforts to protect investors from bad actors. He pointed out that many actors in the space are not compliant with international sanctions and money laundering laws, using crypto for illicit activities.
Despite regulatory crackdowns on crypto, U.S. representative Tom Emmer criticized Gensler and the SEC for failing to address issues related to FTX, Terra-LUNA, Celsius, and Voyager which led to significant losses for investors.
JUST IN: US Congressman Tom Emmer says SEC Chair Gary Gensler is as ineffective as he is incompetent.
— Watcher.Guru (@WatcherGuru) November 8, 2023
Emmer even suggested that Gensler played a role in helping Bankman-Fried establish a “regulatory monopoly,” although this claim was unsubstantiated. The SEC is currently involved in legal battles with major players in the crypto industry over alleged securities violations and regulatory issues.
Hot Take: Striking a Balance Between Innovation and Regulation
The comments by SEC Chair Gary Gensler reflect the ongoing tension between fostering innovation in the crypto space while ensuring regulatory compliance and investor protection. The potential reboot of FTX under new leadership presents an opportunity for rebuilding trust in the wake of past failures. However, it also underscores the need for robust oversight to prevent fraudulent activities. As the crypto industry continues to evolve, finding a balance between innovation and regulation remains crucial for its long-term sustainability and legitimacy.
By
By
By
By
By