HomeExchange NewsGary Gensler Wants More Crypto Control After FTX Debacle

Gary Gensler Wants More Crypto Control After FTX Debacle

Date:

Related stories

FTX Bankruptcy Report Reveals the Exchange Loaned Millions to an Australian Influencer

Alex Saunders, an Australian crypto/finance influencer and founder of...

Kraken Raising Funds as It Prepares to Go Public in 2025

Kraken insiders anonymously spoke to Bloomberg, revealing that the...

Binance Brings Back Visa and Mastercard Integrations

Binance has reintegrated Visa and Mastercard into its platform,...
spot_imgspot_img

The drama behind the now failing digital currency exchange FTX is getting larger, and it’s giving Gary Gensler – the man behind the Securities and Exchange Commission (SEC) an excuse to deepen his involvement.

Gary Gensler Wants Higher SEC Involvement

FTX was, at one point, one of the largest and most popular digital currency exchanges out there. At only three years old (it was founded in 2019), the company soon rose to the top to become one of the most profitable platforms in the space, and many wondered how a firm could rise to fruition so fast.

Many believed this was the mark of a genius, and that genius allegedly came in the form of Sam Bankman-Fried, who was the head executive of the Bahamas-based exchange. Now, however, things have greatly turned around for the company, and not in a good way.

Due to what’s been labeled a “liquidity crunch,” the company is struggling to stay open. It initially turned to Binance for help in staying afloat, and it looked – at least for a while – like the larger firm was going to purchase FTX and ensure its customers could remain trading within the confines of the comfortable walls that had been formed.

Sadly, the deal didn’t go through, and Binance issued a statement claiming the problems FTX was facing were too complicated for it to handle. Bankman-Fried later issued an apology to his customers, claiming that he had “f*cked up.”

In any case, Gary Gensler of the SEC is now claiming the FTX exchange has the same writing on its forehead as the Terra Luna stable currency, which crashed hard during the summer. He said that the crypto space is not doing well, and so long as it remains unregulated, it’s going to continue to present dangers to investors everywhere. In an interview, Gensler said:

The runway is running out. Investors around the globe are getting hurt… This is not like the New York Stock Exchange or NASDAQ. There’s just a handful of lending platforms and a handful of so-called exchanges which commingle. It’s [a] toxic combination where they take people’s money, they borrow against it, it’s not much disclosure, and then they trade against their customers.

 

2022 has been a very bad year for crypto, and the FTX drama is only adding to the ongoing market turmoil. Bitcoin – the world’s number one digital currency by market cap – is now trading for less than $18K, its lowest position since June of this year. Overall, the asset has lost more than 70 percent of its value, while the crypto space in general is down by more than $2 trillion in valuation.

This has also been a year in which several crypto platforms have gone bankrupt or prevented customers from gaining access to their funds.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img