SEC Chair Gensler Open to FTX Relaunch Under Legal Compliance, Eyeing Potential Acquisition by Tom Farley

Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), has expressed openness to the idea of the cryptocurrency exchange FTX being rebooted under new leadership, provided it operates within legal frameworks. This statement comes amid rumors about Tom Farley, the ex-president of the New York Stock Exchange and current CEO of the cryptocurrency exchange Bullish, potentially acquiring the bankrupt FTX. FTX’s founder, Sam Bankman-Fried, was previously convicted of fraud.

During an interview at DC Fintech Week on November 8, Gensler advised that anyone entering this domain, including Tom Farley, should strictly adhere to legal regulations. He emphasized the importance of building investor trust, ensuring proper disclosures, and avoiding conflicts of interest, such as trading against customers or misusing their crypto assets.

Farley is one of three main contenders for acquiring FTX, along with fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group. The winner of this bid could potentially relaunch the exchange after it emerges from bankruptcy next year.

Gensler also highlighted the ongoing issue of fraud within the cryptocurrency industry, underscoring the need for stronger measures to protect investors from exploitation. The SEC is currently involved in legal battles with major crypto players, including Binance, Coinbase, Ripple, and Grayscale.