In a stunning turn of events, FTT, the native token of the now-defunct cryptocurrency exchange FTX, experienced a remarkable 150% surge Friday to tap $5.53 following comments made by U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler.
Gensler’s remarks have fueled this impressive rally and stirred up dissatisfaction within the crypto community.
The surge came after Gensler hinted at the SEC’s support for the revival of FTX as long as the process is strictly within the boundaries of the law.
“If anybody wants to get involved in crypto,” Gensler said, “they must do it within the law.”
The SEC chairman’s comments came in response to questions about the potential involvement of Tom Farley, former president of the New York Stock Exchange, in acquiring FTX.
“Build the trust of investors in what you’re doing,” Gensler continued, “and ensure that you’re doing the proper disclosures, and also that you’re not commingling all these functions, trading against your customers, or using their crypto assets for your own purposes,” said Gensler.
These statements from Gensler have left the crypto community polarized. While some see them as a necessary step toward safeguarding investors and maintaining the integrity of the crypto market, others view them as overly restrictive and detrimental to the industry’s growth.
Crypto podcaster Scott Melker, alias “Wolf of All Streets,” criticized Gensler for his impact on the market, stating, “Gary Gensler pumped $FTT over 100% with a single comment about FTX yesterday. He crashed multiple altcoins by passively deeming them unregistered securities in enforcement actions against various platforms. No human being has manipulated the price of crypto assets more than the very ‘cop on the beat’ who is responsible for ‘protecting’ investors.”
Meanwhile, attorney John Deaton expressed scepticism, suggesting potential connections between Gensler and the “new and improved FTX.”
“I keep saying it: every time you think Gary Gensler couldn’t go lower, he does. I think we need to see which one of Gary Gensler’s friends is going to be tied to the ‘new and improved FTX.’ Go ahead and call me a cynic all you want, but I would bet money there’s a connection somewhere. As much as he’s dogged Coinbase, Binance, Kraken, etc.! This is unbelievable.” Said Deaton.
Gensler’s controversial comments come just a few days after FTX ex-CEO Sam Bankman-Fried received a guilty verdict on seven criminal charges. The surge in FTT’s value signifies hope for further upside if FTX 2.0 becomes a reality, although it remains uncertain whether a native token will be used in a relaunched exchange.
After a brief pullback on Saturday, FTT was trading at $4.54. Notably, the token has appreciated by just over 340% over the past month.