Tennessee Congressman John Rose (R-TN-06), who serves on the House Financial Services Committee, applauded the committee’s decision to have a bipartisan hearing on FTX’s collapse.
“The overnight collapse of FTX will have a lasting impact on consumers and the digital asset industry as a whole,” Congressman Rose said in a statement. “The American people deserve answers, and bad actors must be held accountable to the laws and regulations meant to safeguard consumers. I appreciate Ranking Member McHenry and Chairwoman Waters for swiftly scheduling a hearing on this pressing matter, and I look forward to hearing Sam Bankman-Fried’s testimony soon.”
On Wednesday, Representatives Maxine Waters (D-CA-43) and Patrick McHenry (R-NC-10), both top lawmakers of the House Financial Services Committee, announced a bipartisan hearing into the recent collapse of FTX and the broader consequences for the digital asset ecosystem.
— U.S. House Committee on Financial Services (@FSCDems) November 16, 2022
In a bankruptcy filing last week, crypto company FTX disclosed that it had lost billions of dollars in user deposits through its affiliated trading firm Alameda Research. An estimated 1 million users could lose money, according to a bankruptcy filing on Tuesday cited by The Hill.
A number of companies and individuals are expected to be involved in the committee’s hearing by December, including FTX, the company’s CEO Sam Bankman-Fried, Alameda Research, Binance, and other related entities, according to a press release by the House Financial Services Committee.
Prior to its collapse, FTX was considered one of the most trustworthy and reliable cryptocurrency companies by many members of Congress, The Hill notes.
“Oversight is one of Congress’ most critical functions and we must get to the bottom of this for FTX’s customers and the American people,” Ranking Member McHenry said in a statement. “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.”
– – –
Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.