The House Financial Services Committee will hold a hearing into FTX next month, the committee announced Wednesday.
Rep. Maxine Waters (D-Calif.) and Rep. Patrick McHenry (R-N.C.), respectively the chair and ranking member of the committee, said in a joint statement that the lawmakers would want to hear about the collapse of FTX and its “broader consequences” for the cryptocurrency ecosystem. The committee plans to hear testimony from now-former FTX CEO Sam Bankman-Fried and representatives from FTX, Alameda Research and Binance, which briefly suggested it would acquire FTX.
FTX’s collapse harmed over a million users, Waters said in a statement,
“Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year,” she said. “… [I] know that we need legislative action to ensure that digital assets entities cannot operate in the shadows outside of robust federal oversight and clear rules of the road.”
In his own statement, which called FTX’s failure a “debacle,” McHenry said the committee needs to understand what happened for FTX’s customers and the American public, citing Congress’s role in oversight.
“It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system,” he said.
