July 21, 2024
SEC Chair Gensler Signals Openness to FTX Revival Under Legal Leadership Amid Crypto Industry Scrutiny
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SEC Chair Gensler Signals Openness to FTX Revival Under Legal Leadership Amid Crypto Industry Scrutiny

SEC Chair Gary Gensler has expressed openness to the possibility of a revived FTX crypto exchange, provided it operates within legal boundaries and maintains transparency. This response comes amid reports of Tom Farley, former NYSE president and current Bullish CEO, considering the purchase of the bankrupt FTX exchange founded by Sam Bankman-Fried.

Gensler emphasised the importance of conducting business within the law, urging potential leaders like Farley to “build the trust of investors” through proper disclosures and ethical practices. The SEC chief warned against activities such as trading against customers or misusing their crypto assets.

Farley, along with fintech startup Figure Technologies and crypto venture capital firm Proof Group, is vying to acquire FTX, aiming to restart the exchange after its anticipated exit from bankruptcy next year.

Highlighting the prevalence of fraud in the crypto industry, Gensler stressed the need for continued efforts to keep bad actors away from investors. Without naming specific individuals or companies, he pointed out non-compliance with international sanctions and money laundering laws in the crypto space.

While the SEC has been actively pursuing legal action against major crypto players like Binance, Coinbase, Ripple, and Grayscale, criticisms have been raised. U.S. representative Tom Emmer previously accused Gensler of overlooking failures in FTX, Terra-LUNA, Celsius, and Voyager, suggesting a regulatory monopoly favouring Bankman-Fried before FTX’s collapse. However, these claims lacked supporting evidence. The SEC is currently engaged in lawsuits against various crypto entities over alleged securities violations, including Binance, Coinbase, Ripple, and Grayscale’s application for a Bitcoin exchange-traded fund.

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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