The United States Senate Agriculture Committee has announced that the Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, will be one of the witnesses in a hearing that will analyze the collapse of the FTX cryptocurrency exchange. .
According to the Senate Agriculture Committee website, on December 1 the full committee will hear testimony from Behnam and presumably others with information about the liquidity problems and the subsequent fall of FTX. The hearing, titled ‘Why Congress Needs to Act: Lessons Learned from the FTX Collapse’ will be one of the first for US lawmakers to explore what happened to major cryptocurrency exchange and former CEO Sam Bankman-Fried.
News: On December 1 @SenateAgDems + @SenateAgGOP will hold a hearing about the FTX collapse and the need for congressional action.
—Senate Ag, Nutrition, & Forestry Committee Dems (@SenateAgDems) November 21, 2022
The US House Committee on Financial Services said on November 16 that it will hold a similar hearing “on the FTX collapse and the broader consequences for the digital asset ecosystem” in December, but the event will not appeared on the committee calendar at the time of publication. The committee said it expected to hear from Bankman-Fried, Alameda Research, and Binance, but did not specifically mention testimony from federal regulators such as those at the Securities and Exchange Commission or the CFTC.
Lawmakers on both sides of the aisle in both houses of Congress, as well as the White House, have hinted at the need for regulatory clarity or additional regulation in the wake of the FTX collapse. On Nov. 10, White House press secretary Karine Jean-Pierre suggested that “prudent regulation of cryptocurrency is necessary” in response to cryptocurrency companies lacking proper oversight.
Since filing for bankruptcy and stepping down as CEO of FTX on November 11, Bankman-Fried has become a target of global regulators investigating the exchange, including Turkey’s Financial Crimes Investigation Agency, Bahamian authorities, and US state and federal agencies.. Bankman-Fried, who appears to remain in the Bahamas, could be extradited to the United States for questioning, but it is unclear if he will be available to speak before House or Senate committee hearings.
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