“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” SEC Chair Gary Gensler iterated.
The United States securities regulator chief has hinted he would be open to a rebooted crypto exchange FTX — as long as its new leadership stays within the bounds of the law.
SEC Chair Gary Gensler’s comments were made in response to reports that Tom Farley, a former president of the New York Stock Exchange, is now in the running to buy the bankrupt cryptocurrency exchange founded by now-convicted fraudster Sam Bankman-Fried.
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” Gensler said in an interview at DC Fintech Week on Nov. 8, according to CNBC. He added:
3 FTX bidders in the Auction are:
Bullish – Crypto exchange run by Tom Farley
Figure Technologies – fintech start up and
Proof Group – crypto venture-capital firmThree bidders will be leading a consortium
— Sunil (FTX Creditor Champion) (@sunil_trades) November 8, 2023
The winner could restart the exchange after its planned exit from bankruptcy next year, according to the WSJ report.
Crypto still has its fair share of fraudsters, says Gensler
Meanwhile, in light of Bankman-Fried’s conviction, Gensler said the cryptocurrency industry is still rife with fraudsters and suggested more work needs to be done to keep them away from investors.
“Think about how many actors in this space are not complying right now with international sanctions and money laundering laws and are using crypto for nefarious or bad actions. He said, without naming individuals or companies. Gensler added:
Emmer went as far to suggest Gensler helped Bankman-Fried gain a “regulatory monopoly” on the cryptocurrency industry prior to FTX’s collapse, but the statement wasn’t backed by any evidence.
The SEC is currently battling out lawsuits against Binance, Coinbase and Ripple over alleged securities violations and Grayscale for its application to convert its Bitcoin Trust product into a spot Bitcoin exchange-traded fund.