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The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has indicated that he would consider a revamped FTX crypto exchange, provided its new leadership adheres to legal requirements.
Gensler’s comments come in response to reports that Tom Farley, a former president of the New York Stock Exchange, is a contender to purchase the bankrupt cryptocurrency exchange previously founded by convicted fraudster Sam Bankman-Fried.
During an interview at DC Fintech Week on Nov. 8, Gensler stated, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law.’” He emphasized the importance of building investor trust, proper disclosures, and avoiding unethical practices, such as trading against customers or using their crypto assets for personal purposes.
Farley, currently the CEO of cryptocurrency exchange Bullish, is one of three bidders, including Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group, seeking to acquire FTX, as reported by the Wall Street Journal on Nov. 8.
The winning bidder could potentially revive the exchange following its anticipated exit from bankruptcy next year.
Gensler, addressing concerns about fraud in the cryptocurrency industry, highlighted the prevalence of non-compliant actors violating international sanctions and money laundering laws. He emphasized the need to safeguard investors from fraudulent activities within the crypto space.
The SEC has been actively involved in regulatory actions against various crypto entities, including ongoing lawsuits against Binance, Coinbase, Ripple, and Grayscale. Despite regulatory efforts, criticism has been directed at Gensler for allegedly missing failures in FTX, Terra-LUNA, Celsius, and Voyager, leading to substantial losses for cryptocurrency investors. However, these claims lack supporting evidence.
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