25 March 2023
Crypto Collision Hearings are Planned in US Congress
Senator Sherrod Brown (D-OH) stated on February 3 that a hearing headlined "Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets" will be held on February 14 before the Senate Banking Committee. It has been 2 months since its hearing in parliament on December 14 to examine the collapse of the Cryptocurrency exchange FTX. The record FTX crash has caused concern among regulators who fear for the future of the Cryptocurrency sector. Sam Bankman-Fried, the ex. Chief Executive Officer of the collapsed Cryptocurrency exchange FTX, had $697 million worth of assets confiscated by federal officials in the United States.
Also Read: Tax Investigation For Korean Crypto Exchange Bithumb
Alterations will be made for the Senate Banking Committee's second hearing of the 118th Congress, which is set for this week. While Senator Brown would continue to serve as the committee chair, Senator Tim Scott replaced Senator Pat Toomey as the committee's ranking member. Scott prioritized the creation of Crypto regulations as part of his political agenda.
Also Read: Nigeria To Regulate Stablecoins & Initial Coin Offerings (ICOs)
About US Congress
Congress of the United States of America is the national senate and house of representatives of the US. It has two chambers, the House of Representatives or the lower house and the Senate or the upper house. It has its sessions in the Capitol building in Washington, DC. Voters choose their representatives and senators at large, while governors may replace temporary Senate vacancies by appointing new senators. 100 senators and 435 representatives make up the total number of voting members in Congress. When the Senate votes are deadlocked, the Vice President of the United States gets to cast a tie-breaking vote. There are six individuals in the House of Representatives who do not have voting privileges.
Presently, every other January marks the beginning of a new two-year term for Congress. On Election Day, which occurs once every two years, elections are conducted. For each two-year Congress, voters choose new representatives to serve in the House of Representatives. The number of members is set at 435 by the Reapportionment Act of 1929, and each congressman must be chosen by a single-member district in accordance with the Uniform Congressional Redistricting Act. If every state is to have at least one representative in Congress, then the Congressional districts must be fairly distributed amongst some of the states per 10 years based on population data from the United States Census.
More on Crypto Collision Hearings
Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, expressed his desire to begin earnest attempts to have the United States government regulate bitcoin in a letter to Treasury Secretary Janet Yellen in the month of November. Hearings were held in the House and the Senate when FTX filed for bankruptcy, and these hearings affected several small participants in the United States. The House Financial Services Committee is likely to hold a second hearing on FTX once in 2023.
Committee hearings have not been announced as of this writing. In the December hearing, witnesses included actor Ben McKenzie, Shark Tank star and investor Kevin O'Leary, Cato Institute's Jennifer Schulp, and law professor Hilary Allen. Sam Bankman-Fried, the former CEO of FTX, was arrested in the Bahamas just before he was set to testify at a House Financial Services Committee hearing. At this time, it's not known who will testify at the next hearing in February.
What is FTX?
In the past, FTX ran both a Crypto exchange and a Crypto hedge fund, but the firm has since filed for bankruptcy. Launched in 2019, by July 2021, the exchange had over a million members and ranked third in terms of Cryptocurrency trading volume. FTX is a company that was founded in Antigua and has its headquarters in the Bahamas. If you're located in the United States, you may also trade on FTX.US, a sister exchange that works in tandem with FTX. Company FTX has been in Chapter 11 insolvency litigation in the United States from November 11, 2022. A story published by CoinDesk in November 2022 raised eyebrows by claiming that FTX's partner business, Alameda Research, had invested heavily in the FTX currency named FTT.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.