The United States House of Representatives Committee on Financial Services has announced that it will hold a hearing to investigate the events surrounding the collapse of cryptocurrency exchange FTX.
In a Nov. 28 announcement, House Financial Services Committee Chair Maxine Waters said lawmakers had scheduled a hearing aimed at exploring FTX’s collapse for Dec. 13. The hearing, which is expected to be the “first part” in a series of hearings on the impact of the bankruptcy filing of a major cryptocurrency exchange, was first announced on Nov. 16 but not scheduled.
Following the fall of FTX, the urgent need for legislation has never been greater. @FSCDems anticipated this need & have already been working for several months under the leadership of Chairwoman Waters, w/ RM McHenry, to craft bipartisan legislation.
: https://t.co/RyttaaSqX7
— US House Committee on Financial Services (@FSCDems) November 16, 2022
Following the fall of FTX, the urgent need for legislation has never been greater. @FSCDems anticipated this need and has already been working for several months under the leadership of Speaker Waters, with RM McHenry, to craft bipartisan legislation.
The House committee said in its earlier announcement that it expected to hear from the people and companies involved in the events that led FTX to file for Chapter 11 bankruptcy in the District of Delaware, including former CEO Sam Bankman- Fried, Alameda Research, and Binance. Although Bankman-Fried was reportedly still in the Bahamas at the time of publication, New York Times journalist Andrew Sorkin said on November 24 that the former CEO intended to give an interview in New York on November 30 during a conference.
The US Senate Agriculture Committee has also scheduled a hearing on “Lessons Learned from the FTX Collapse” for December 1, at which Commodity Futures Trading Commission Chairman Rostin Behnam will appear as a witness.. It is not clear if Bankman-Fried will also speak before the commission if she remains in the country after her New York tour.
FTX has been in the crosshairs of lawmakers and regulators around the world after the company filed for bankruptcy on November 11. The Australian government said its treasury department planned to implement regulations aimed at improving investor protection in 2023, while the Monetary Authority of Singapore has faced scrutiny for failing to warn investors about FTX.
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