House Financial Services Committee to call Binance's CEO to testify on FTX collapse

House Financial Services Committee to call Binance's CEO to testify on FTX collapse

House Financial Services Committee to call SBF to testify on Exchange's failure and practices.

The FTX disaster was the only thing that the industry needed in a year when regulations and lawmakers were looking to the future of cryptocurrencies. The House Financial Services Committee will hold a hearing in December on the failure of the No. The televised congressional hearing will forever be a focus on the perils of a largely unregulated market and besmirch the reputation of cryptocurrencies.

The chairwoman of the committee is Maxine Waters.

The committee said it plans to seek testimony from Sam Bankman-Fried, co-founder and CEO of FTX, and other executives at the exchange and sister company, the hedge fund Alameda Research, as well as Binance, the Cayman Islands-based exchange and FTX rival.

Without a subpoena, the panel cannot force Bankman-Fried to take part in the hearing, and even then he could choose to invoke the Fifth Amendment of the U.S. Constitution and decline to answer questions.

Waters said legislative action needed to ensure that digital asset platforms cannot operate outside of robust federal oversight.

On Wednesday, the Secretary of the Treasury, Janet Yellen, called for more strict oversight for the cryptocurrency sector in light of FTX's failure.

Yellen said that several of the risks identified by government agencies throughout the year were instrumental in FTX's collapse, including bringing in customer assets, lack of transparency, and conflicts of interest. She also referred to concerns that connection between crypto and traditional capital markets could jeopardize financial stability.

FTX filed for bankruptcy Nov. 11 after a crisis of confidence depleted its stocks last week.