The US Congress has put Binance’s role in the collapse of FTX under scrutiny.
Representative Patrick McHenry stated that the issue will be one of the focal points of the investigation.
US Congress to Consider Binance’s Role
McHenry, who is expected to become the next chairman of the House of Representatives Financial Services Committee, referred to an internet meme derived from the TV series “The Office” to highlight the role of Binance CEO Changpeng Zhao in the collapse of FTX.
FTX filed for Chapter 11 bankruptcy on November 11.
McHenry stated that Sam Bankman-Fried, former CEO of FTX, will also be invited to the session.
“The first step is to call for a bipartisan hearing,” said the senior member of the House Financial Services Committee.
On the question of whether the status of FTX will affect stablecoin legislation, McHenry said:
“We’ve had a fruitful conversation with President Waters and we’ve worked significantly to come to terms with this, and I think we understand each other much better. We think alike on what stablecoin is.”
With this, McHenry noted that additional legislation has become urgent to define digital assets and regulate centralized exchanges.
Binance denied having a direct role in FTX’s downfall.
