US Lawmakers Call Crypto Executive To Testify In FTX Collapse Hearing
House lawmakers on Wednesday called for FTX's founder to testify about the cryptocurrency exchange's collapse.
Rep. Maxine Waters (D-Calif.) and Sen. Patrick McHenry (R-N.C.), ranking members of the House Financial Services Committee, are conducting a rare bipartisan hearing next month. They're seeking the testimony of Sam Bankman-Fried, who resigned as FTX chief executive on Friday when the exchange filed for bankruptcy protection.
FTX, one of the biggest cryptocurrency exchanges, was unable to meet investors' withdrawal demands.
"The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds," Waters said in a statement.
While the committee's probe is focused on FTX and Bankman-Fried, it could extend the investigation's scope.
"Oversight is one of Congress's most critical functions and we must get to the bottom of this for FTX's customers and the American people," McHenry said.
"It's essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system."
The probe announced Wednesday follows increasing scrutiny on the cryptocurrency market, which reached a market cap of $3 trillion last year.
President Biden in September issued a framework for cryptocurrency regulation, with a goal to stamp out fraud and protect consumers. The president called for further scrutiny on illegal crypto finance practices, suggested a "new digital dollar" and stressed the need for greater financial stability.
President Biden earlier this year also issued an executive order calling on federal agencies to more closely monitor cryptocurrencies.
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