Key Insights
- FTX, the defunct crypto exchange, may be making a comeback under new leadership.
- The SEC is open to the idea of a revamped FTX, as long as it operates within the law.
- Three entities are currently bidding to buy out FTX: Bullish, Figure Technologies, and Proof Group.
- SEC Chairman Gary Gensler has been criticized for his lack of clarity on crypto regulation.
- Lawmaker Tom Emmer has accused Gensler of being “incompetent and ineffective†for missing crypto failures.
We just might be seeing FTX come back into the spotlight very soon, according to recent reports.
There are currently three top bidders, vying to buy out the defunct crypto exchange, and a former New York Stock Exchange boss is among them.
Here’s everything you need to know about the FT-X resurrection, what the SEC has to say about the issue, and some of the legal criticism that the SEC Chairman, Gary Gensler is facing from top lawmakers in the US
You Can Bring FTX Back, Just Do It Within The Law
According to the U.S. securities regulator chairman, Gary Gensler, bringing back FTX may not be such a bad idea.
This is despite the crypto exchange’s collapse when it was discovered that its founder and former CEO, Sam Bankman-Fried, stole billions of dollars from customer funds.
Gensler has expressed his willingness to see a reborn FTX, as long as it abides by the law according to a recent interview he had at the DC Fintech Week on Nov. 8, according to CNBC.
Gensler has thrown his support behing a revamped FTX (even without any paperwork), as long as its new owner follows legal procedure and does all it can to protect its investors under the law.
Top 3 Bidders
According to these reports, three entities are currently bidding for a spot as the new FTX owners.
They include Bullish, a crypto exchange run by former NYSE president, Figure Technonogies (a fintech startup), and Proof Group (a venture capital firm).
Gensler in the Fintech Week interview, said:
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law.”
Gensler has recommended that whoever buys FTX gain the trust of its investors, and make sure that the exchange isn’t trading against its customers, as we saw in FTX 1.0.
Tom Farley, who previously led the New York Stock Exchange, is now competing with Figure Technologies and Proof Group to acquire FTX, according this report from the Wall Street Journal.
The WSJ says that the winner of this bid would have the freedom to restart the crypto exchange after it exits bankruptcy in 2024.
Meanwhile…
Lawmaker Slams Sec Chair For Missing Crypto Failures
Gensler has also come under fire recently, from lawmakers and industry players.
Gensler has always been criticised for his for his administration’s lack of clarity when it comes to regulating the crypto space.
According to a recent petition from U.S. representative Tom Emmer. Gensler is “incompetent and ineffective†because he missed crypto crashes like Terra ($40 billion), Celsius ($5 billion), Voyager ($5 Billion), and even the most obvious of all: FTX ($8 billion).
Collectively, all of these crashes cost investors nearly $100 billion.
Emmer, in his critique, suggested that Gensler may have even helped Bankman-Fried gain a “regulatory monopoly†on the cryptocurrency industry before FTX collapsed
The SEC has been cracking down on individuals and companies so far, suing several companies for alleged securities violations.
Some of the most wellknown cases include Ripple, Grayscale, Binance and even Coinbase.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
