House Financial Services Committee to subpoena SBF, others from FTX

House Financial Services Committee to subpoena SBF, others from FTX

The House Financial Services Committee is calling on SBF to testify on exchange's failure and practices.

The FTX disaster was the last thing the industry needed after regulators and lawmakers were taking down on cryptocurrencies in a year. Now, the House Financial Services Committee has announced that it is holding a hearing in December on the failure of the No. By looking at the causes of a company that was doing $10 billion in daily trading volume, televised congressional hearings are bound to cast a shadow over the prospects of a largely unregulated market and further besmirch the reputation of cryptocurrencies.

Maxine Waters, chairwoman of the committee.

The committee said it plans to seek testimony from Sam Bankman-Fried, the 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 hearings, and even then he could choose to invoke the Fifth Amendment of the U.S. Constitution and decline to answer questions.

Waters said that legislative action is 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 stringent oversight of the cryptocurrency industry in light of FTX's failure.

Yellen said that many of the risks identified by government agencies throughout the year were instrumental in FTX's collapse, such as coming of customer assets, lack of transparency, and conflicts of interest. Her comments reaffirmed worries that connections between crypto and traditional capital markets could jeopardize financial stability.

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