FTX Exchange Struggles to Reopen Under New Management: Will Crypto History Repeat Itself?
Crypto exchange FTX is attempting to resume operations with a new management team after bankruptcy. According to recent reports, Tom Farley, former president of the New York Stock Exchange (NYSE), is said to be interested in buying FTX and reopening it. Furthermore, Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), gave the green light for the reopening of the crypto exchange in his speech at the DC Fintech Week event and in a subsequent interview. Following this approval, FTX skyrocketed its collapsed altcoin, FTX Token (FTT).
SEC Chairman Gary Gensler stated during the DC Fintech Week event that there is no objection to FTX reopening, but it must be done within clear legal frameworks.
In an interview with CNBC after his speech at the event, Gensler emphasized the need for such initiatives to comply with the law, referring to Tom Farley, former president of NYSE, who expressed his interest in acquiring FTX after introducing his own crypto exchange, Bullish. He also stated that businesses need to gain investor trust, provide accurate information, and prevent conflicts of interest.
Gensler highlighted that existing securities laws are already effective and should be enforced before considering new regulations. He emphasized that there is no conflict between crypto and securities laws, but many global players do not comply with these regulations and use cryptocurrencies for illicit purposes. Gensler revealed that the SEC has initiated approximately 150 crypto-related cases or settlement processes in the past six years and emphasized the importance of companies operating within legal boundaries.
Gensler’s statement officially boosted the price of FTX’s collapsed altcoin, FTT. The price of FTT had plummeted below $1 after FTX filed for bankruptcy. Since then, this altcoin has been struggling to recover with positive news such as repaying FTX’s debts and returning users’ assets. However, it rapidly surged in value after the SEC Chairman’s latest statement.
Starting the day at $1.35, FTT reached as high as $2.33 during the day with over 75% increase. At the time of writing, the altcoin is trading at $2.19 after a slight pullback, and its trading volume in the last 24 hours has increased by a staggering 953%.