SEC Chair Gensler Expresses Openness to FTX Revamp under Proper Leadership

According to Cointelegraph: Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has hinted at possible openness to a reestablishment of cryptocurrency exchange FTX under compliant leadership. These comments follow reports that Tom Farley, former president of the New York Stock Exchange, is considering purchasing the now-bankrupt exchange initially founded by convicted fraudster Sam Bankman-Fried. Gensler, during DC Fintech Week on November 8, stated, “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law.’” His comments underline the importance of rebuilding investor trust, providing necessary disclosures, and avoiding the misapplication of customer funds within such a venture. Tom Farley is currently the CEO of cryptocurrency exchange Bullish. Two other contenders, Fintech startup Figure Technologies and venture capital firm Proof Group, have also joined the bidding war for FTX, according to a Wall Street Journal report dated November 8. The winner could potentially revive the exchange following its anticipated exit from bankruptcy next year. Gensler pointed out that the cryptocurrency industry remains populated with fraudulent actors and needs stricter regulation and security measures to protect investors. He warns against non-compliant infiltrators looking to exploit the space for illicit activities without mentioning specific individuals or companies. Despite the SEC's current legal actions against Binance, Coinbase, and Ripple for alleged securities violations, and Grayscale for its Bitcoin Trust product's conversion application, U.S. representative Tom Emmer has previously criticized Gensler for failing to prevent the blunders at FTX, Terra-LUNA, Celsius, and Voyager, which led billions of dollars in losses for cryptocurrency investors.