- Gensler says FTX reboot is possible under certain conditions.
- Remarks come after a potential relaunch bid by ex-NYSE chief.
- Gensler stresses the need for crypto to follow securities laws.
Following the FTX collapse and the conviction of its founder, the exchange could see its fortunes turn. Most recently, SEC Chair Gary Gensler opened up about the possibility of FTX making a comeback, provided it sticks to the rules.
FTX Eyes a Lawful Return Under Scrutiny
In the wake of its legal entanglements, SEC Chair Gary Gensler opened the door to a potential revival of the cryptocurrency exchange. On Wednesday, November 8, Gensler, speaking at DC Fintech Week, suggested that FTX could make a comeback with the right leadership and a commitment to legal compliance.
This perspective comes after a tumultuous period for FTX, marked by the conviction of its founder, Sam Bankman-Fried, on fraud and money laundering charges. The verdict, delivered last week, concluded a series of events that began with the company’s bankruptcy filing a year ago.
For FTX to return, it must adhere to the laws and rebuild the trust it lost among investors. “If Tom [Farley] or anybody else wanted to be in this field, I would say, ‘Do it within the law,'” Gensler stated. This comment was about reports that Farley, a former president of the New York Stock Exchange and current head of Bullish, a digital asset exchange, is considering buying what remains of FTX.
The Bid for FTX: A New Leadership Horizon?
Tom Farley, previously at the helm of the New York Stock Exchange, is now a contender to take over FTX through his crypto exchange, Bullish Global. His experience suggests he could bring a needed dose of regulatory savvy to the troubled crypto exchange. Farley’s bid is one of the few remaining from an initial pool of over 70.
Farley was reportedly known at the NYSE for focusing on rules and market stability, which could translate into a more compliant and stable FTX if he takes charge. However, the plan to revive FTX, which started with the company’s August proposal, didn’t offer a deal for FTT token holders, which could be a sticking point in the exchange’s restructuring.
On the Flipside
- While Tom Farley’s potential takeover of FTX brings hope for reform, it’s not without complications. Restoring faith in a defunct exchange is daunting.
- Farley’s proposal does not offer a deal to FTT token holders, meaning they could be left with no compensation.
Why This Matters
The outcome of FTX’s bid is significant for the broader crypto market. Farley’s Wall Street credentials could bring legitimacy to crypto in the eyes of regulators.
Read more about the latest FTX relaunch bid:
Former NYSE President Eyes FTX Revival In Battle Of Three
Read more about Circle’s long-anticipated IPO:
Circle Eyes 2024 for Long-Awaited Initial Public Offering