The US House Committee has revealed plans to hold a hearing from the appropriate entities on the FTX implosion.
The United States House Committee on Financial Services recently disclosed that it would hold a December hearing on the recent FTX collapse to ascertain the cause as investigations ensue. The development was first reported by Reuters Wednesday.
Speaking on the matter, chairwoman of the Financial Services Committee, Maxine Waters, highlighted the financial damage the FTX debacle had on investors, as she noted that over one million users had incurred losses due to the collapse.
“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” Maxine remarked.
The hearing is necessary to investigate the origin of the collapse as a way to reach an appropriate conclusion on steps to take in response. Consequently, all relevant authorities will be present, including FTX, Alameda Research, Sam Bankman-Fried, Binance, and other related entities.
Furthermore, crypto-friendly Congressman and House Committee member Patrick McHenry pointed out the significance of uncovering the actual cause of the implosion. “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system,” he mentioned.
Reports of the Committee’s decision to hold a hearing come shortly after FTX filed for Chapter 11 bankruptcy. FTX filed for bankruptcy last Friday, with Sam Bankman-Fried stepping down as CEO as the saga progressed. The firm noted that it had 100,000 creditors, but recent reports suggest the number might be as much as 1 million, underlining the extent of its impact.
The FTX debacle has once again highlighted the significance of a definite regulatory framework for the cryptocurrency industry. Waters said last Wednesday that the US needs to ramp up its regulatory efforts to make sure that the appropriate authorities and the law properly oversee crypto entities.