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Securities and Exchange Commission Chairman Gary Gensler is the newest player in the FTX saga. On Dec. 6, Gensler sat down to talk with Democrats on the House Financial Services Committee. All this is in preparation for the FTX hearing next week.
Gensler spoke Tuesday, Dec. 6, at a briefing for Democratic members only. While what he discussed with that group of representatives is private, Gensler's position is quite obvious: he and the SEC have already suited up.
In a recent interview with Yahoo, Gensler stated that securities laws say you must properly segregate customer funds. According to Gensler, you can't run an exchange and a hedge fund simultaneously. He asserts that it is like operating against your own customer base.
What we know for now is that Gensler believes all these collapses are part of a pattern. Whether this will lead to stronger SEC regulation is still difficult to discern, but the hearing is the first step toward it.
As for the commission, they want to hear from Sam Bankman-Fried, founder of FTX. Yet, he refuses to take part because, according to him, he has not finished learning from his mistakes. The chairwoman of the Financial Services Committee, California Democrat Maxine Waters, thinks otherwise. She recently insisted that SBF participate after his lengthy media tour.
Is the Committee ready? We hope so. The fall of FTX cannot be defined as a simple mistake. It will be a long process, but we hope that justice will be found.