SEC Chairman Gensler said that restarting FTX, run by the former NYSE chairman, is possible if done within the law.
SEC Chairman Gary Gensler Made a Statement About the FTX Exchange
SEC Chairman Gary Gensler said during DC Fintech Week that revitalizing FTX could work if the new administration has a clear understanding of the laws.
Gensler cited reports that Tom Farley, a former chairman of the New York Stock Exchange, was among a short list of three bidders vying to buy what's left of the bankrupt crypto exchange.
Farley founded his own digital asset exchange called Bullish in May and is reportedly one of the last bidders in the bankruptcy auction.
“If Tom or anyone else wants to get into this field, I say do it within the law,” Gensler said in a statement.
“Ensure investors have confidence in what you're doing and make sure you're making appropriate disclosures, and also make sure you're not mixing all those functions, trading against your clients. Or using their crypto assets for your own purposes,” he said.
FTX founder Sam Bankman-Fried was found guilty last week on all seven charges against him, including charges of fraud and money laundering.
According to the accusations, the exchange, which filed for bankruptcy a year ago, was transferring customer money to sister hedge fund Alameda Research.
He was a market maker on the Alameda FTX exchange and was granted privileges such as a $65 billion credit limit that did not require collateral.
“We would never allow the New York Stock Exchange to operate a hedge fund and trade against its own members or against customers in the market,” Gensler said.
*This is not investment advice.