Last week, FTX founder Sam Bankman-Fried was found guilty on all seven criminal counts against him, as reported by Todayq News. However, recent news of FTX’s revival has captured everyone’s attention and altered the overall market structure of the FTX token.
FTX potential revival, says SEC Chair
During a recent talk with local media at DC Fintech Week, Securities and Exchange Commission (SEC) Chair Gary Gensler said that a revived FTX could work, but only if new leadership with a clear understanding of the law is in place.
This statement from the SEC chair came amid the potential acquisition of FTX by Tom Farley, a former president of the New York Stock Exchange. Farley is one of the bidders vying to purchase the bankrupt crypto exchange.
FTX token (FTT) surge over 85% highest in single day
This news has not only created hope for FTX’s revival, but it has also had an impact on the overall cryptocurrency market. The potential revival of FTX caused a significant surge in the FTX token (FTT) of over 85% in less than 10 hours. According to TradingView, FTT is currently trading at around $2.314.
In addition to this, major cryptocurrencies such as Bitcoin (3.5%), Cardano (4.5%), Solana (10.3%), and others have also seen significant gains. Another reason for this significant movement in cryptocurrencies, aside from FTX’s potential revival, is SEC Chair Gensler’s positive approach to cryptocurrency.
SEC’s Gensler warned FTX bidders
Gensler warned that if FTX is to be revived, it must operate within the law and build investor trust. He also said that FTX must avoid commingling customer funds and trading against its customers.
Additionally, he also stated that existing securities laws are “very robust and strong” and that they simply need to be enforced. The chair also stated that there is nothing about cryptocurrency that is inconsistent with securities laws. However, FTX investment banker Kevin M. Cofsky recently stated that they will decide by mid-December whether to sell the exchange or form a partnership to restart it.