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Regulator Says FTX’s LedgerX Auction Shows Need for More CFTC Clout on Acquisitions

  • CFTC’s Johnson calls for Congress to provide more authority
  • Bids for LedgerX were due on Jan. 25; final auction on March 7
FTX 'Horror Stories' Abound in Crypto Exchange's Bahamas Home
Photographer: Andrey Rudakov/Bloomberg

A senior Commodity Futures Trading Commission official says the agency needs the power to approve or reject an unregulated company’s acquisition of a derivatives exchange.

The planned sale of crypto derivatives exchange LedgerX, a solvent piece of Sam Bankman-Fried’s collapsed FTX empire, has raised concerns about the CFTC’s authority over these acquisitions. LedgerX and other parts of the business are being auctioned off as part of the FTX bankruptcy proceedings.