The token of defunct FTX, FTT, rallied over 80% on Thursday after the Securities and Exchange Commission’s (SEC) boss, Gary Gensler, stated that the relaunch of the exchange was possible.
FTT ticked from around $1.35 to $2.4 before steadying above $2, according to CoinStats data.
Under the Law
In an interview with CNBC on Wednesday during DC Fintech Week, when asked about the possibility of FTX’s relaunch, Gensler stated that it was feasible only if it was done under the law. Three companies are in the race to buy FTX and restart the firm, with former president of the New York Stock Exchange Tom Farley’s new crypto firm, Bullish, among the bidders.
“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 disclosure—and also that you’re not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes,” Gensler said in the interview.
On so many occasions, Gensler has maintained that crypto exchanges should uphold existing securities laws. His agency has enforced the law on several exchanges, including Coinbase and Binance. The agency has also lost some cases against crypto firms, suffering losses to Ripple and Grayscale.
Respite for FTT?
FTT is far below its all-time high of $79 as it crashed following the demise of FTX. However, the token usually moves when there is positive news in the bankruptcy proceeding involving the crypto exchange. FTT is trading at a seven-month high with increased volume across all exchanges.
However, there is no guarantee that FTX 2.0 will need a native token if it restarts. There is also no guarantee that FTX will resume operations, as the news of the reopening has lingered since its current boss, John Ray, first announced the move in January.
