December 6, 2023

US HFSC Plans to Underseek FTX Crash, Hearing Holds in Next Month.

The unexpected collapse of the second-largest crypto exchange in the world has triggered many reactions from various government authorities and public analysts. The event has been one of the major issues that the house reviewed in their last sitting, and they all agreed to underseek the event as its hearing will hold next month. However, the event will be investigated by the House Financial Service Committee(HFSC), which will also investigate the state of other crypto tokens after the event.

An Overview of the Committee Decision 

The committee has slated the first week of December for the hearing. They revealed that the firms and accused individuals constituting FTX CEO, Alamenda Research center, Binance, and other relevant bodies would be interrogated during the hearing.

Rep. Patrick McHenry, a representative of the House, stated, “For the sake of FTX’s users and the American community, the house must excavate the facts about the event.” In addition, the leader of the committee and some well-known Republican legislators seconded the motion to investigate the event. We must apprehend offenders answerable for promising platforms to utilize technology to formulate a more accessible monetary system.

The current leader of the HFSC, Rep. Maxine Waters, also commented revealing that more than one million customers were victims of the FTX crash. Many of the victims invested their hard-earned funds into the platform, but surprisingly the investment vanished within some seconds. She said the FTX crash is just one case out of the several collapses this year.

HFSC Leader Commended For Collaborating With the Republican Reps

McHenry lauded Waters, who would probably lead the HFSC in 2023. He also suggested that the committee collaborate with other relevant organizations to achieve maximum success. The House and the Senate will work tirelessly to avoid such incidents in the crypto industry by formulating a specific code of conduct.

In their communal proclamation that disclosed the hearing, McHenry professed, “I commend HFSC leader Sen. Waters for functioning with Republicans to acquire accountability through a bipartisan strategy.”

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