FTX’s Path to Redemption: SEC’s Gensler Nods at Compliance

The head of the U.S. Securities and Exchange Commission, Gary Gensler, has signaled that he’s open to the idea of the troubled crypto exchange FTX making a comeback under new management, provided they play by the rules.

During a conversation at DC Fintech Week, as reported by CNBC, Gensler responded to the buzz about Tom Farley, the former New York Stock Exchange president, potentially purchasing the now-bankrupt FTX, which was previously led by Sam Bankman-Fried, who has been charged with fraud.

Gensler’s advice to Farley or anyone else eyeing a venture into this space was straightforward: stay within the legal framework. He underscored the importance of earning investor trust, making the necessary disclosures, and avoiding conflicts of interest, such as trading against your own customers or misusing their crypto assets.

Currently, Farley heads up Bullish, a crypto exchange launched in 2021.

On another note, the Wall Street Journal, on November 8, named two other contenders aiming to acquire FTX: Figure Technologies, a fintech startup, and Proof Group, a crypto venture capital firm, citing sources in the know.

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