SEC Gary Gensler Finally Appears to Speak After the FTX Incident, Industry Players Begin to Be Careful! Here's Why!


 After Sam Bankman-Fried's FTX debacle, the SEC's Gary Gensler finally came forward to speak out about the crypto incident. Another U.S. branch of FTX has come under scrutiny and been investigated by the US SEC for the way it handles client assets. The Securities and Exchange Commission is investigating the relationship between FTX and other companies owned by Sam Bankman-Fried. The investigation is reportedly focused on indications of a liquidity crisis on crypto exchanges.

Binance yesterday gave hope by stating its willingness to acquire FTX but today has made the opposite statement that they are not interested in pursuing the acquisition of FTX. Meanwhile, SEC chairman Gary Gensler spoke about the current scenario in the crypto market. Gensler said there is a need for protection for crypto investors.

SEC Chairman says crypto companies have been warned. He added that the SEC will take time to gather evidence and facts. He added that many customers lost money in crypto. which is a very interconnected world with a few focused players. Gensler emphasized the need for investor protection in the industry. He said crypto is a remarkably unregulated but regulation-bound field.

Meanwhile, Mike Novogratz, CEO of Galaxy Digital, said the FTX episode will bring difficulties to crypto companies. Novogratz's company in its quarterly report said it had little exposure to FTX. The company said it holds cash and digital assets in FTX, most of which are in the process of withdrawal.

Conversely, the price of Bitcoin (BTC) continued to slide towards the $17K level as the market reacted to the news that Binance was no longer interested in acquiring FTX.