In a remarkable turn of events, the price of FTT, the native cryptocurrency of FTX exchange, soared by nearly 85% following a statement from the U.S. Securities and Exchange Commission (SEC) Chairman, Gary Gensler.
Gensler expressed his willingness to consider the relaunch of the FTX cryptocurrency exchange, provided that the new leadership adheres strictly to legal regulations. This revelation came after reports surfaced that Tom Farley, former President of the New York Stock Exchange, is exploring the possibility of acquiring FTX. The cryptocurrency exchange faced bankruptcy due to the legal troubles of its former CEO, Sam Bankman-Fried.
Following this news, the FTT token surged to $2.2, marking an impressive 85% increase with no immediate signs of cooling down.
Gensler emphasized the importance of compliance with existing laws in the cryptocurrency space. He stated, “If Tom or anyone else wants to get into this field, I would say, ‘Do it within the confines of the law.'” Farley currently serves as the CEO of the cryptocurrency exchange Bullish, established in 2021.
In addition, there are reports that Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group are also entering the race to acquire FTX. The winning bidder may potentially revitalize the exchange after emerging from bankruptcy next year, according to the Wall Street Journal.
Addressing concerns about security and transparency, Gensler reminded that the cryptocurrency industry continues to face challenges from fraudulent activities. He proposed the implementation of measures to prevent malicious behavior and safeguard investors.
In the backdrop of ongoing lawsuits against major players such as Binance, Coinbase, Ripple, and Grayscale by the SEC, Gary Gensler underscored the importance of compliance and navigating regulations akin to traditional financial industries. The cryptocurrency landscape is evolving, and the SEC Chairman’s statements reflect a commitment to ensuring legal adherence and investor protection in this dynamic space.