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HomeCrypto NewsMarketU.S. CFTC Chair To Testify At Today’s FTX Hearing in Senate

U.S. CFTC Chair To Testify At Today’s FTX Hearing in Senate

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Benham will be the first witness at the FTX hearing scheduled today.

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The chairman of the U.S. Commodity Futures Trading Commission (CFTC), Rostin Benham, will testify at a Senate Agriculture Committee hearing today to examine the lessons learned from the collapse of the former prominent crypto exchange FTX.

The Senate Agriculture Committee named Benham as the first witness to testify at the hearing dubbed “Why Congress Needs to Act: Lessons Learned from the FTX Collapse.”

Notably, the announcement was made last week in a Reuters report. However, the Commodity Futures Trading Commission took to its Twitter page to remind its followers about the hearing.

Recall that Benham had invited the public to comment on a previous FTX proposal to offer a direct settlement of crypto derivatives. Benham also had a roundtable discussion with former FTX CEO Sam Bankman-Fried before the exchange’s implosion last month.

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However, after the FTX debacle, the cryptocurrency exchange withdrew its application, as reported last month by Bloomberg.

The development comes less than two weeks after Debbie Stabenow, Chair of the U.S. Senate Agriculture Committee, urged Congress to pass the bipartisan Digital Commodities Consumer Protection Act (DCCPA). Stabenow believes the bill would have prevented FTX from undertaking the risky behavior that caused its collapse.

FTX Collapse

The FTX collapse is one of the unfortunate incidents that wreaked havoc on the global cryptocurrency space. It can be recalled that FTX filed for Chapter 11 bankruptcy protection last month, thus leaving nearly one million of its customers facing losses to the tune of billions of dollars. The exchange’s former management, led by SBF, allegedly misappropriated customers’ funds, leaving a hole of over $8 billion in the exchange balance sheet.

It is worth noting that the FTX collapse also spilled into the crypto market, plunging the prices of top crypto assets, including Bitcoin and Ethereum.

SBF Acknowledged His Mistakes, Denies Committing Fraud

SBF made his first major public appearance at the New York Times DealBook Summit yesterday. During the event, Bankman-Fried admitted to making serious managerial errors that resulted in the collapse of the exchange. However, he denied committing fraud while in charge of the exchange’s operations.

I made a lot of mistakes,” SBF said“There are things I would give anything to be able to do over again. I didn’t ever try to commit fraud on anyone.” 

New York Times columnist Andrew Ross Sorkin interviewed SBF during the summit.

Crypto Community Reacts to SBF’s First Major Public Appearance

Meanwhile, SBF’s appearance at NYT DealBook Summit did not sit well with several crypto stakeholders, who believe the media outlet was too soft on the former FTX CEO.

Cardano founder Charles Hoskinson was among those who reacted to the interview, saying:

Similarly, Hedgeye, an independent investment company, also slammed Sorkin for asking the audience to applaud SBF after the interview. 

Attorney John Deaton, the founder of Crypto Law, also reacted to a comment about how Sorkin questioned SBF.  

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Author

Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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