US Senators Set To Open a Formal Investigation Into the FTX Failure

B. Ali
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

The US Congress is about to launch a formal investigation into the FTX collapse through its Agriculture Committee on Cryptocurrency Regulation, in a rare bipartisan action. Bi-partisan is a political act in which both main political parties agree on all or most aspects of a political decision.

Congress said on Nov. 15 that it will begin an investigation into the collapse of the cryptocurrency exchange FTX. More than a million creditors were unable to access their accounts as a result of the firm’s insolvency, which also precipitated a dip in the cryptocurrency markets.

It should be noted that the FTX crisis has now been the subject of three congressional panels, and the senate agriculture committee would be the first of the three to oversee the issue. Moving on, the Commodity Futures Trading Commission (CFTC) Chairman, Rostin Behnam, is scheduled to speak. via the panel discussion. 

Prior to the FTX collapse, Rostin Behnam was leading the charge to establish a regulated crypto market and had FTX’s backing. Debby Stabenow and John Boozman, two committee chairmen, collaborated with Behnam in August to draught a measure that would empower the CFTC to oversee the spot markets for cryptocurrencies. 

The congress’s leading Republican from North Carolina, Patrick McHenry, stated: 

Chairwoman Waters and I are announcing a House Financial Services Committee hearing on the FTX debacle,

He further added:

Oversight is one of Congress’ most critical functions and we must get to the bottom of this for FTX’s customers and the American people. We must hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.

Sam Bankman-Fried Showed His Support For this Proposal:

Sam Bankman-Fried, CEO of FTX, backed the legislation (Digital Commodities Consumer Protection Act). He even urged his peers in the cryptocurrency industry to support the measure since it appears to be more tolerant of cryptocurrency than the strict rules established by the Securities and Exchange Commission (SEC) for its regulation.

However, the Digital Commodities Consumer Protection Act is being supported by Senators Stabenow and Boozman to regulate cryptocurrencies. 

What amount did FTX provide to legislators?

Before the FTX collapse, Ryan Salame, the former CEO of FTX Digital Markets, and one of Sam Bankman-senior Fried’s assistants contributed tens of thousands of dollars to senators on the Senate Agriculture Committee to influence their votes in this year’s elections. 

Tina Smith got $5,800, Kirsten Gillibrand received $10,800, Cory Booker received $5,700, and Stabenow and Boozman each received $23,200. Sens. Richard J. Due in and Kirsten Gillibrand each received $10,800.

.

 

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.