First FTX court hearing set by US authorities
Hearings will be held by the US. Financial Services Committee while hearings by the Senate Agriculture Committee are being prepared.
FTX’s unexpected collapse has prompted government officials to begin planning hearings on the subject now that the dust has settled.
Because of the size of the now-bankrupt exchange, the hearings are likely to result in new regulations changing the crypto industry forever.
Consumer protection calls
There have already been investigations by authorities in Turkey and the Bahamas, but decisions by regional watchdogs would probably only affect crypto exchanges in those countries.
A regulation enacted by the U.S. If a crypto company is headquartered in the United States, the government will almost certainly set a precedent for other countries and, at best, force changes everywhere.
With this in mind, the United States Senate Agriculture Committee has decided to hold the first hearing on the collapse of FTX on December 1st.
The announcement of the full committee hearing, titled “Why Congress Needs To Act: Lessons Learned From The FTX Collapse,” was accompanied by Committee Chair Debbie Stabenow’s call to action to pass the bipartisan Digital Commodities Consumer Protection Act. This allegedly would have limited retail investors’ exposure to FTX’s implosion.
The FSC is also conducting its own investigation.
The Financial Services Committee in the United States Senate is also planning hearings on the same topic. As of today, no court date has been set for FTX’s case against the FSC.
According to Maxine Waters, chairman of the House Financial Services Committee, regulation is required to ensure that a similar collapse does not jeopardize the assets of hardworking people around the world.
The press release announcing the upcoming hearing emphasizes that the FSC will do everything possible to ensure that new cryptocurrency
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