Tom Farley or any other FTX acquiring party that wishes to reopen the exchange must comply with SEC law, according to the chair of the SEC.
The present management team at FTX is diligently striving to restore operations to the exchange. Recent reports also indicate that Tom Farley, the former president of the NYSE, has expressed considerable interest in acquiring FTC and reviving the organization.
SEC Chair Gary Gensler Is Watching
SEC chair Gary Gensler stated during DC Fintech Week that he has no objection to FTX resuming operations but that it must do so with a thorough comprehension of the law.
Farley unveiled his proprietary digital asset exchange, Bullish, in May of this year. It is one of the most prominent contenders in the bankruptcy auction. In an interview with CNBC, Gensler stated:
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’. Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes.”
The initial intention was to ensure a complete separation between FTX and Alameda; however, the evidence throughout the month-long trial unveiled a substantial degree of interdependence between the two organizations. FTX and Alameda were involved in a complex and troubling relationship.
Bankman-Fried oversaw an exchange and a proprietary trading firm concurrently, which prompted inquiries regarding possible conflicts of interest and operational entanglements.
Reportedly, for debt restructuring, both platforms have been transferring assets worth millions of dollars, according to a recent report.
FTX Cannot Bypass The Law
Regarding developing new industry regulations, Gensler emphasized that the current securities laws are “robust and effective.” Ensuring their enforcement is crucial.
He asserted, “There is no inherent conflict between securities and crypto laws.” “The difficulty is that many international participants are conducting business violating these established regulations.” The chair of the SEC further stated:
“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”.
According to Gensler, the SEC has initiated legal proceedings in litigation or settlements in approximately 150 crypto-related cases over the past six years.
A noteworthy ongoing dispute pertains to Coinbase, a publicly traded cryptocurrency exchange based in the United States, which has communicated its intention to relocate due to regulatory obstacles.
Gensler underscored the significance of corporations adhering to legal regulations while abstaining from specific case references in his statement.
