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FTT Surges as SEC Chief Gary Gensler Says FTX Reboot Possible
- SEC Chair endorses FTX’s potential revival under lawful, informed leadership, amid talks of ex-NYSE chief’s interest in buying the exchange.
- Several companies are in bids for FTX post-Bankman-Fried’s fraud case.
- FTT token’s price spiked over 90% after SEC Chair Gensler’s remarks, then dropped 15% from its peak to US$ 2.06.
Gensler Gives His Blessing
Gary Gensler, chair of the United States Securities and Exchange Commission (SEC) spoke to Mackenzie Sigalos from CNBC’s Crypto World about the end of the FTX trial, and about the future of the exchange.
He made his comments during DC Fintech Week and said that a potential revival of the bankrupt FTX could succeed with new leadership that fully understands and complies with the law.
Gensler, reflecting on Sam Bankman-Fried’s conviction, highlighted the ongoing issues of fraud within the cryptocurrency industry and also the need for further measures to protect investors from illegal activities, including those not adhering to sanctions and anti-money laundering laws.
The chair said, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law.'”
3 Bidders Competing for FTX
By Tom, Gensler is referring to Tom Farley, ex-president of the New York Stock Exchange and now the CEO of crypto exchange Bullish.
The Wall Street Journal reported that crypto venture capital firm Proof Group as well as Figure Technologies, a firm using blockchain for equity and loan management, are also bidding to purchase the bankrupt FTX exchange, along with Tom Farley’s Bullish.
The winning bidder may have the opportunity to relaunch the exchange post-bankruptcy, which is expected to conclude next year. Farley entered the race with his own digital asset exchange, positioning himself as a significant contender.
Gensler emphasised that, whoever would be running FTX would have to do it lawfully and with all necessary disclosures while gaining investors’ trust.
Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes.
Gary Gensler, SEC Chair FTT Token Reacts
The price of FTT, the token of the now-defunct crypto exchange FTX, experienced a significant surge of over 90% overnight. This increase followed the comments from SEC Chair Gensler. The latest reported trading price for FTT was US$ 2.06 (AU$ 3.25), which is a 15% decline from last night’s top of US$ 2.37 (AU$ 3.72).
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
