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.

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.

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.

Levii

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

1 hour ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

1 hour ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

2 hours ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

7 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

9 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

11 hours ago

This website uses cookies.