Following its bankruptcy, FTX’s new management is making every effort to revive and reopen the cryptocurrency exchange. Recent reports indicate that Tom Farley, the former president of NYSE, is interested in acquiring FTX and reopening it. The U.S. Securities and Exchange Commission (<a href="https://en.coin-turk.com/two-rising-altcoins-of-interest-to-turkish-crypto-investors-how-high-could-they-go/”>SEC) has also given the green light for the relaunch of the cryptocurrency exchange.
SEC Chairman Gary Gensler stated at DC Fintech Week that there is no objection to reopening FTX as long as it is done in accordance with clear laws and regulations.
In an interview with CNBC following his remarks at DC Fintech Week, Gensler referred to Tom Farley, the former president of NYSE who introduced his own cryptocurrency exchange called Bullish in May this year and expressed his interest in acquiring and reopening FTX. Gensler stated:
If Tom or anyone else wants to be in this space, I would say, ‘Do it within the framework of the law.’ Build trust with your investors, make sure you make accurate disclosures, and also make sure you don’t mix all of these up and trade against your customers. Or make sure you’re not using their cryptocurrencies for your own purposes.
FTX and Alameda Research were initially designed to provide a clear distinction in the areas highlighted by Gensler, but evidence presented during a month-long hearing revealed a high level of connection between the two organizations. It was revealed that FTX’s founder and former CEO, Sam Bankman-Fried, simultaneously managed both the cryptocurrency exchange and Alameda Research, raising questions about potential conflicts of interest and operational confusions.
Meanwhile, Gensler emphasized that existing securities laws are already robust and effective as plans are being made for new regulatory measures in the sector. The Chairman of the SEC highlighted the importance of enforcing laws and stated:
There is no conflict between cryptocurrency and securities laws. The problem lies in the fact that many global players are currently operating without complying with these established regulations. Many actors in this field are currently not complying with international sanctions and anti-money laundering laws, and they are using crypto for illicit or malicious actions.
Gensler noted that the SEC has initiated approximately 150 legal proceedings related to crypto in the past six years. Although he avoided mentioning specific cases during his statement, he emphasized the importance of companies operating within the boundaries set by the law.