BTC

$99109.841

0.93%

ETH

$3300.02

-1.49%

BNB

$624.382

0.65%

XRP

$1.453

24.07%

News

SEC Chair Gensler says rebooted FTX is possible if done ‘within the law’

November 9, 2023 - Around 2 mins mins to read

Key Points:

  • Tom Farley, former president of the New York Stock Exchange and a contender in the bankrupt exchange’s bidding, faces the challenge of navigating the crypto industry within legal boundaries.
  • While a rebooted FTX is possible, it would likely need to operate primarily outside the U.S. and comply with all applicable regulations.

The potential for a rebooted FTX is possible and hinges on new leadership with a firm grasp of legalities, as emphasized by SEC chair Gary Gensler during DC Fintech Week.

SEC Chair Gensler says rebooted FTX is possible if done 'within the law'

Rebooted FTX Faces Regulatory Hurdles as Gensler Highlights Investor Trust and Conflict Avoidance

Reports indicate that Tom Farley, former president of the New York Stock Exchange and a contender in the bankrupt exchange’s bidding, must navigate the industry within legal bounds. Gensler urged adherence to regulations, emphasizing investor trust, proper disclosures, and the avoidance of conflicts like trading against customers.

FTX’s founder, Sam Bankman-Fried, recently faced legal consequences, found guilty on seven counts, including fraud and money laundering. The charges revealed the exchange channeling customer funds to sister hedge fund Alameda Research. Gensler drew attention to the unconventional relationship, questioning the compatibility of running both an exchange and a proprietary shop in regulated capital markets.

Rebooted FTX Is Possible Only Outside the U.S. Under Strict Compliance

Despite a supposed firewall between FTX and Alameda, evidence highlighted their close ties during the trial. Gensler underscored the problematic nature of this association, emphasizing the need for adherence to existing securities laws, which he deemed robust and in need of enforcement. As the regulatory landscape unfolds, Gensler pointed out that a rebooted FTX is possible, primarily serving customers outside the U.S.

This scrutiny parallels that faced by Binance, with the SEC and CFTC charging Binance for attempting to let high-net-worth U.S. investors trade on its unregulated international exchange, challenging their own controls. Gensler urged consideration of international sanctions and money laundering laws within the crypto space, emphasizing the non-compliance of certain actors without naming specifics. Despite some interim losses, Gensler highlighted the SEC’s extensive involvement in crypto cases over the last six years, including legal disputes with companies like Coinbase.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

FTX

SEC

Avatar of Levii

Author

Levii

News

SEC Chair Gensler says rebooted FTX is possible if done ‘within the law’

Key Points:

  • Tom Farley, former president of the New York Stock Exchange and a contender in the bankrupt exchange’s bidding, faces the challenge of navigating the crypto industry within legal boundaries.
  • While a rebooted FTX is possible, it would likely need to operate primarily outside the U.S. and comply with all applicable regulations.

The potential for a rebooted FTX is possible and hinges on new leadership with a firm grasp of legalities, as emphasized by SEC chair Gary Gensler during DC Fintech Week.

SEC Chair Gensler says rebooted FTX is possible if done 'within the law'

Rebooted FTX Faces Regulatory Hurdles as Gensler Highlights Investor Trust and Conflict Avoidance

Reports indicate that Tom Farley, former president of the New York Stock Exchange and a contender in the bankrupt exchange’s bidding, must navigate the industry within legal bounds. Gensler urged adherence to regulations, emphasizing investor trust, proper disclosures, and the avoidance of conflicts like trading against customers.

FTX’s founder, Sam Bankman-Fried, recently faced legal consequences, found guilty on seven counts, including fraud and money laundering. The charges revealed the exchange channeling customer funds to sister hedge fund Alameda Research. Gensler drew attention to the unconventional relationship, questioning the compatibility of running both an exchange and a proprietary shop in regulated capital markets.

Rebooted FTX Is Possible Only Outside the U.S. Under Strict Compliance

Despite a supposed firewall between FTX and Alameda, evidence highlighted their close ties during the trial. Gensler underscored the problematic nature of this association, emphasizing the need for adherence to existing securities laws, which he deemed robust and in need of enforcement. As the regulatory landscape unfolds, Gensler pointed out that a rebooted FTX is possible, primarily serving customers outside the U.S.

This scrutiny parallels that faced by Binance, with the SEC and CFTC charging Binance for attempting to let high-net-worth U.S. investors trade on its unregulated international exchange, challenging their own controls. Gensler urged consideration of international sanctions and money laundering laws within the crypto space, emphasizing the non-compliance of certain actors without naming specifics. Despite some interim losses, Gensler highlighted the SEC’s extensive involvement in crypto cases over the last six years, including legal disputes with companies like Coinbase.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.