The current administration at FTX is making every effort to revive the exchange and reopen its functioning. Latest reports also suggest that NYSE’s former president, Tom Farley has shown strong interest in acquiring FTC and reviving it again. SEC Chair Gary Gensler Is Watching Wh...
SEC Chair Gary Gensler Is Watching
While speaking at the DC Fintech Week, SEC chair Gary Gensler said that he is ok with FTX reopening its operations, however, that needs to happen with a clear understanding of the law.
Earlier this year in May, Farley introduced his own digital asset exchange named Bullish, and it is currently among the leading candidates in the bankruptcy auction. While speaking to CNBC, Gensler said:
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’. 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.”
FTX and Alameda were initially designed to maintain a strict separation, but the evidence presented during the monthlong trial revealed a significant level of interconnectedness between the two entities. It became evident that FTX and Alameda had an intricate and concerning relationship.
Bankman-Fried simultaneously managed both an exchange and a proprietary trading firm, raising questions about potential conflicts of interest and operational entanglement.
FTX Can’t Bypass the Law
Gensler emphasized that when contemplating new regulatory measures for the industry, the existing securities laws are already “robust and effective.” The key lies in their enforcement.
“Think about how many actors in this space are not complying right now with international sanctions and money laundering laws and are using crypto for nefarious or bad actions”.
Gensler emphasized the importance of companies operating within the bounds of the law, although he refrained from mentioning specific cases during his statement.