Former NYSE President’s FTX Revival Could Receive SEC Approval

Crypto News– The SEC might give the green light for the comeback of FTX, the crypto exchange that’s been through the wringer, as long as the new management sticks to the rulebook, says SEC Chair Gary Gensler.

Former NYSE President’s FTX Revival Could Receive SEC Approval

This news surfaces during talks about the potential takeover of FTX by Tom Farley, the ex-president of the New York Stock Exchange (NYSE). FTX, previously caught up in a mess of fraud and bankruptcy allegations, is currently mulling over offers from three interested buyers. Speaking on CNBC during DC Fintech Week, Gensler stressed the significance of playing by the regulatory rules for the incoming leadership. He emphasized,

“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law. Build investors’ trust in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not blending all these functions, trading against your customers. Or using their crypto assets for your purposes.'”

Farley, who unveiled his digital asset exchange Bullish in May, is in the running as one of the three bidders eyeing the struggling FTX. His bid puts a spotlight on the importance of adhering to regulations in the crypto space. Gensler echoes this sentiment, believing that the current securities laws are “very robust and strong” and must be upheld.

FTX’s rocky history involves its founder, Sam Bankman-Fried, who got slapped with seven criminal counts, including fraud and money laundering. Prosecutors claimed that his exchange funneled customer funds to the sister hedge fund Alameda Research, eroding trust and ultimately leading to the exchange’s bankruptcy.

What Lies Ahead for FTX: A Glimpse into the Next Chapter

Kevin M. Cofsky from Perella Weinberg Partners, the investment banker in FTX’s corner, spilled the beans they’ll be locking in decisions about FTX’s future come mid-December.

They’re mulling over a couple of plays, one being the potential sale of the entire crypto exchange, flaunting a hefty customer list of over 9 million. The other card on the table involves dancing into a partnership to kickstart the exchange anew.