Former SEC Chair: FTX On Path To Stability With This Recent Decision
FTX Latest News: While the crypto market struggles to recover from the shock collapse of FTX, there are finally some positive signals coming out amid an ongoing SEC probe. The troubled crypto exchange entered into chapter 11 bankruptcy proceedings after it struggled to cope with the liquidity crisis. Along with the bankruptcy announcement, FTX also replaced Sam Bankman-Fried with John Ray as the new CEO. Whether Ray finds enough support to turn the fortunes around for the company remains to be seen.
The Right Person
Meanwhile, former U.S. Securities and Exchange Commission chair Jay Clayton said Ray is the right choice to steer FTX from the crisis. He said FTX has the right person in John Ray in the role of CEO to drive the company towards stability and maximize on the assets. Clayton said FTX has the right person on the job (CEO) in terms of stabilizing the situation and looking to either operate of liquidate or a combination of both. He made the comments on Monday while speaking to CNBC.
Clayton also said non-US crypto exchanges and companies lack basic investor protections. “Off-shore financial institutions just don’t have any of the basic protections that we have in the U.S.” He added that those companies do not have customer funds segregated and unregulated leverage. Also, the ability of the non-US companies to conduct multiple conflicting activities is relatively unfettered, in addition to a lack of records and governance, he added. The former SEC chair warned that retail investors should stay away from financial entities operating outside the US.
Value In US Companies
Speaking about the crypto companies operating in the U.S., he said,
“The entities that are regulated, some of the entities in the U.S., they look to be the most solvent and valuable going forward. I am sure there is value to be derived there.”
Meanwhile, the FTX SEC probe is centered around the manner in which FTX handled user assets.
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