FTX’s native FTT token surged nearly 90% in the past 24 hours to a nine-month high of $2.33 after SEC Chairman Gary Gensler suggested that the bankrupt exchange could recover under proper leadership .

“Let’s do it within the law.”

Gensler advised any potential buyer of a bankrupt cryptocurrency company to ensure the company operates within the law, saying the company must "build investor confidence and ensure appropriate disclosures."

The SEC Chairman added:

The company’s leadership must ensure that all funds are not mixed to the detriment of the interests of customers, or that customers’ crypto assets are not used for personal purposes.

His comments came amid reports that former New York Stock Exchange chairman Tom Farley was one of three bidders vying to acquire FTX's remaining shares during bankruptcy proceedings.

Farley is the CEO of Bullish, a cryptocurrency exchange that launched in 2021 and is backed by Block.one, Peter Thiel, and Alan Howard.

Recent reports suggest that efforts to revive the bankrupt cryptocurrency platform are coming to an end. Three potential buyers, namely Farley, crypto venture capital firm Proof Group, and fintech startup Fig Technologies, are in the running.

Once a successful buyer is identified, they could oversee the relaunch of FTX’s operations once the company emerges from bankruptcy, expected in 2024.

Meanwhile, Gensler’s comments suggest that any acquisition of FTX would face heavy scrutiny from the SEC, especially following allegations of mishandling customer funds under the leadership of Sam Bankman-Fried, who faces up to 115 years in prison following his recent conviction.

FTT grows dramatically

Gensler’s comments had a positive impact on FTT, which had surged by about 90% to $2.26969 at press time.

The rally has added more than $300 million to the token’s market cap, which currently stands at $746.49 million, according to Coinmarketcap data.

Data from CoinMarketCap also shows that the asset’s trading volume has increased by 940% over the past 24 hours to $230 million at press time.

Meanwhile, this is not the first time that news about the restart of an exchange has had a positive impact on FTT’s price action. Earlier this year, FTX’s market cap rose by 12% after court documents revealed that FTX CEO John J. Ray III was considering plans to restart the failed exchange.

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