After it had initially announced plans to hold a hearing on the circumstances leading to the sudden fall of FTX, the United States House Financial Services Committee has now fixed a date for this hearing.
According to the announcement by the United States House Financial Services Committee, an inquiry into events leading to the sudden collapse of FTX will begin on Dec 13. The inquiry dubbed “Investigating the Collapse of FTX” is expected to be one of the first in which lawmakers examine happenings leading to FTX collapse and its consequent impact on the broader digital asset industry.
During this hearing, the lawmakers will hear testimonies from both individuals and companies on their roles in the events leading to FTX’s bankruptcy filings.
Although there’s no mention of testimonies from federal regulators like the Security and Exchange Commission (SEC), the hearing will most likely include former CEO Sam Bankman-Fried, Alameda Research, Binance, FTX, and other related entities.
Hopefully, after the hearing, bad actors will be held accountable so responsible players can harness technology to build a more inclusive financial system. Recall that the embattled platform has brought on board a suitable team consisting of former senior United States regulators to help untangle the matter.
Interestingly, this planned hearing follows after a similar one that will be held by the Senate Agriculture Committee on Dec 1.
In the hearing dubbed “Why Congress Needs to Act: Lessons Learned from the FTX Collapse” the lawmakers will explore the collapse of one of the major crypto exchanges. Commodity Futures Trading Commission (CFTC) Chair, Rostin Behnam will be one of the witnesses in the hearing.
Call for more Regulation of the Crypto Industry
After the FTX filed for bankruptcy earlier in November, the exchange together with its former CEO has been the subject of numerous regulatory scrutiny as its collapse sent shockwaves down the industry.
According to a previous report, President Joe Biden is leading a charge for global game-changing Bitcoin and crypto rules Meanwhile, Christine Lagarde, president of the European Central Bank (ECB) during a committee on Economic and Monetary Affairs of the European Parliament stressed the need for more robust crypto regulations in the European Union.