The Shadow of FTX: A Historic Hearing
On November 28, the House Financial Services Committee, led by Chair Maxine Waters, announced a pivotal hearing scheduled for December 13 to unpack the tangled web surrounding the collapse of the infamous cryptocurrency exchange, FTX. This hearing isn’t just another bureaucratic exercise; it’s a deep dive into potentially the biggest financial cataclysm in the crypto world.
A Call for Legislation
The fallout from FTX’s downfall has sent shockwaves through the financial community, highlighting an urgent need for legislation. The Democrats on the committee have been busy behind the scenes, crafting bipartisan measures to restore faith in crypto markets and fend off similar disasters in the future.
- Chairwoman Waters and Republican Minority Member McHenry are shaping legislation aimed at increasing accountability.
- Lawmakers are focusing on resilience in cryptocurrency trading platforms.
Who’s in the Hot Seat?
Mark your calendars! Expected testimony from key players involved in the FTX saga will be part of the inquiry. Among those likely to take the stand is former CEO Sam Bankman-Fried, who’s currently soaking up the sun (and perhaps a little anxiety) in the Bahamas.
Also Expected to Testify:
- Representatives from Alameda Research
- Binance
- Various investors and industry experts
Andrew Sorkin of the New York Times has reported that Bankman-Fried might also make a special appearance at a NYC conference just days before the hearing—let’s hope he’s got his public speaking notes down. The big question remains: Will he join the committee’s hearing?
Senate’s Parallel Probe
On a parallel track, the U.S. Senate Agriculture Committee has scheduled its own hearing on December 1, focused on