If FTX Is Up For Sale, New Owners Must Adhere To Law, FTX Chair Gary Gensler Says

SEC Chair Gary Gensler has expressed that a revived FTX FTT/USD could operate successfully under new leadership, provided it adheres to the law.

This comes amid reports that Tom Farley, former president of the New York Stock Exchange, is among the top contenders to acquire the bankrupt crypto exchange.

Farley, who launched his own digital asset exchange, Bullish, in May, is reportedly one of the final bidders in the bankruptcy auction.

Gensler’s comments come ahead of Benzinga's Future of Digital Assets conference on Nov. 14, where the future of cryptocurrencies and their role in the financial market will be a key topic of discussion.

“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” CNBC reported Gensler as saying.

He emphasized the importance of building investor trust and ensuring proper disclosures.

FTX’s founder, Sam Bankman-Fried, was recently found guilty on all seven criminal counts against him, including fraud and money laundering charges.

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His exchange, which filed for bankruptcy a year ago, was accused of funneling customer money to sister hedge fund Alameda Research.

Gensler stressed that existing securities laws are robust and strong, and simply need to be enforced. “There’s nothing about crypto that’s incompatible with securities laws,” he said.

He also highlighted the number of actors in the crypto space currently not complying with international sanctions and money laundering laws.

Over the last six years, the SEC has either brought or settled 150 cases in crypto, including a legal spat with crypto exchange Coinbase Inc. COIN in the U.S. Gensler emphasized that companies operating in the U.S. must obey the law.

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