Now that the dust has settled after the unexpected collapse of FTX, government officials have begun scheduling hearings on the issue.
Given the size of the now bankrupt exchange, the hearings are likely to result in new regulations that will change the crypto industry from now on.
Calls for consumer protection
Authorities in Turkey and the Bahamas have already begun their own investigations – but decisions by regional watchdogs would likely only affect the operation of crypto exchanges in those jurisdictions.
Regulations issued by the US government, on the other hand, would most likely at least set a precedent for other countries and, at best, force changes everywhere, provided a crypto company is headquartered in the US.
With that in mind, the U.S. Senate Agriculture Committee has decided that the first hearing on the issue of FTX’s collapse will take place on December 1.
The announcement of the full committee hearing, titled “Why Congress Needs To Act: Lessons Learned From The FTX Collapse,” was also accompanied by a call to action from committee chair Debbie Stabenow to pass the bipartisan Digital Commodities Consumer Protection Act. This would have limited retail investor exposure to the FTX implosion.
— Senate Ag, Dems Nutrition and Forestry Committee (@SenateAgDems) November 21, 2022
Since the Agriculture Commission is indeed a strange regulatory body that hosts a hearing on cryptocurrency-related matters, the Agriculture Commission will enlist Rostin Benham – the chairman of the CFTC – to look into the matter.
A separate investigation by the FSC is also underway
Elsewhere in the US Senate, the Financial Services Committee is also preparing for hearings on the same issue. As of today, no date has been set for FTX’s day in court against the FSC.
According to Maxine Waters – the chair of the House Financial Services Committee – regulation is needed to ensure that a similar collapse does not endanger the assets of hard-working people around the world.
“The fall of FTX has wreaked havoc on over a million users, many of whom were ordinary people who invested their hard-earned savings (…), only to see everything disappear in seconds. We need legislative action to ensure digital asset entities cannot operate in the shadows outside of robust federal oversight and clear traffic regulations.
The press release announcing the upcoming hearing emphasizes that the FSC will do everything it can to ensure that new regulations for cryptocurrency platforms are passed as soon as possible.
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