Gary Gensler, the US SEC Chairman, has hinted at the possibility of the FTX crypto exchange making a comeback; however, the crypto exchange will have to follow strict regulatory rules and guidelines.
SEC Chair Optimistic About FTX Resurgence
During his discussion in the DC Fintech Week 2023, the United States Securities and Exchange Commission (SEC) Chairman, Gary Gensler told CNBC that the failed FTX crypto exchange could have a more positive future if specific conditions involved in its resurgence were followed.
Gensler suggested that FTX could have a revival and continue operating as a legal crypto exchange if the crypto exchange was relaunched under a new leadership with reputable standing who has a clear understanding of the laws.
Gensler’s statement underscores the importance of legal compliance and transparency which was previously lacking when FTX founder Sam Bankman-fried and his executives were leading the insolvent crypto exchange.
The result of the bad leadership in FTX saw billions of customer funds missing from FTX account books, thoroughly devastating major investors and individuals affiliated with the crypto exchange.
Gensler has stated that individuals who are looking to purchase the remains of the exchange and revive it like former NYSE President, Tom Farley, should ensure they do so within the boundaries of law, prioritizing investor trust and refraining from using customer assets for personal gain.
“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,” Gensler stated.
FTT Token Spikes 81% After Gensler Discusses FTX Revival
FTX’s native token (FTT) is presently in the spotlight after experiencing a major increase in its market capitalization by 81.94% following the US SEC chairman’s optimistic outlook regarding the resurgence of the defunct FTX crypto exchange.
The token’s market volume in the last 24 hours has also increased by 1,154.94% and the price of FTT at the time of writing is $2.15 according to CoinMarketCap.
This price increase comes as a surprise to many crypto investors and enthusiasts who witnessed the value of FTT take a large dip following the collapse of FTX. There were also talks of the exchange eliminating its FTT token in its draft creditor repayment plans in August.
As the price of FTT continues to grow, many investors have maintained caution, especially since most cryptocurrencies in the digital space are frequently influenced by a wide range of factors.
Additionally, it remains to be seen if the uptick in FTT’s value is an indication of renewed confidence in the cryptocurrency following Gensler’s talk of an FTX rebirth or a momentary shift in crypto market dynamics.
