SEC’s Gary Gensler signals FTX is ready to return
Key Takeaways
- SEC’s Gensler expressed approval for the possible relaunch of FTX while strictly adhering to legal standards.
- Farley’s bid to acquire FTX comes against the backdrop of Gensler’s calls for transparency and investor protection.
- The SEC Chairman is pushing for stricter regulatory compliance, highlighting the ongoing problem with fraud in the cryptocurrency sector.
SEC Chairman Gary Gensler said: Conditional support for re-established cryptocurrency exchange FTXEmphasize that The new leadership must operate honestly and within the parameters of regulatory law..
FTX’s bankruptcy and its founder’s legal troubles have led to speculation about a possible takeover by former New York Stock Exchange (NYSE) President Tom Farley.
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Gensler noted the potential for FTX to be reborn under such leadership, emphasizing the following: Legal compliance required for future operations.
If Tom or anyone else wants to get involved in this, I would say, “Do it within the law.”
As reported by CNBC, in a conversation at DC Fintech Week, Gensler detailed his vision for a compliant FTX, emphasizing:
Build investor confidence in what you are doing and make sure you are making appropriate disclosures. Also, make sure you do not mix all these features, trade for clients or use your cryptocurrency assets for your own purposes.
According to a Wall Street Journal article dated November 8, Farley, currently CEO of cryptocurrency exchange Bullish, is at the forefront of the acquisition race. With competitors such as Figure Technologies and Proof Group.
Gensler’s comments also Addressed the issue of fraud in the cryptocurrency industry.. He indicated the following: Broader regulatory issuesWe advocate for a stronger regulatory environment to protect investors.
Consider how many actors in this space are currently using cryptocurrencies for nefarious or bad activities without complying with international sanctions and money laundering laws.
As the FTX story unfolded, Gensler’s position became clear. A rigorous, legally compliant framework is critical for any potential relaunch. As the industry is still navigating the impact of FTX’s downfall, the SEC’s priority is to protect investors from the risks posed by non-compliant companies.
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