Government officials and regulators in the United States have begun to schedule hearings to investigate the causes of FTX’s unexpected collapse. This comes at a time when the crypto industry is starting to return to normalcy following the FTX debacle that occurred earlier this November.
Given the size of the now-bankrupt crypto exchange, the outcome of the court hearings will almost certainly result in new regulations or policies that will help revitalize and transform the cryptocurrency industry.
Regional regulatory decisions, on the other hand, are likely to impact only the operation of cryptocurrency exchanges in those jurisdictions. Turkey and the Bahamas have already launched investigations into the FTX saga.
In contrast, if a crypto company has its headquarters in the United States, regulations enacted by the American government will almost certainly set a precedent for other countries and, at best, force changes everywhere.
In light of this, the U.S. Senate Agriculture Committee has decided that the initial hearing on the collapse of FTX will take place on December 1. This was announced in a tweet from the committee’s official Twitter account.
Along with the announcement of the full committee hearing, titled “Why Congress Needs to Act: Lessons Learned From the FTX Collapse,” it was also urged that the bipartisan Digital Commodities Consumer Protection Act be passed. According to reports, this Act would reduce retail investors’ exposure to the collapse of FTX.
Because it is an unconventional regulatory body holding a hearing on cryptocurrency-related issues, the Agriculture Committee will invite Rostin Benham, the head of the CFTC, to speak at the hearing.
The FSC to Conduct Independent Investigations into FTX
The United States Senate’s Financial Services Committee is also planning hearings on the same subject. At press time, a date has yet to be set for FTX’s court appearance against the FSC.
A similar collapse shouldn’t put the assets of hard-working people around the world at risk, according to Maxine Waters, chairman of the House Financial Services Committee.
According to a press release announcing the upcoming hearing, the FSC will use every legal tool at its disposal to ensure that new rules for cryptocurrency platforms are passed as soon as possible.
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