The US Senate Agriculture Committee has revealed that Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam will serve as one of the witnesses in a hearing investigating the collapse of crypto exchange FTX.

According to the Senate Agriculture Committee's website, the full committee will hear testimony from Behnam and, assumedly, other individuals with information about FTX's liquidity issues and subsequent demise on December 1. The hearing, titled 'Why Congress Needs to Act: Lessons Learned from the FTX Collapse,' will be one of the first in which US lawmakers will look into what happened with the major cryptocurrency exchange and former CEO Sam Bankman-Fried.

The United States House Financial Services Committee announced on November 16 that it would hold a similar hearing into the collapse of FTX and the broader consequences for the digital asset ecosystem in December, but the event was not on the committee's calendar at the time of publishing. 

The committee stated that it anticipated hearing from Bankman-Fried, Alameda Research, and Binance but did not explicitly mention testimony from federal regulators such as the Securities and Exchange Commission (CFTC).

In the aftermath of FTX's demise, lawmakers on both sides of the aisle in both chambers of Congress and the White House have implied the need for regulatory clarity or additional regulations. In response to crypto firms operating without proper oversight, White House Press Secretary Karine Jean-Pierre suggested on November 10 that prudent regulation of cryptocurrencies is indeed required.

Since declaring bankruptcy and stepping down as CEO of FTX on November 11, Bankman-Fried has been the target of global regulators looking into the exchange, including Turkey's Financial Crimes Investigation Agency, authorities in the Bahamas, and state and federal agencies in the United States. 

Bankman-Fried, reportedly still based in the Bahamas, may be extradited to the United States for questioning; it is uncertain whether he'll be available to talk before the House or Senate committee hearings.

What do you think of the upcoming hearing? Do you think it will have an impact on the markets? Let us know your thoughts by sharing this article on social media.

Nov 22, 2022
Crypto News

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