US Congress plans to hold ‘crypto crash’ hearing

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Key takeaways:

  • This month, the US Senate Banking Committee will convene a meeting on “Crypto Crash.”
  • Members should cooperate to establish a bipartisan regulatory framework, according to the authority.

The Senate Banking Committee’s Sherrod Brown announced on February 3 that a hearing titled “Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets” would take place on February 14. Two months have passed since parliamentarians convened to investigate the failure of the cryptocurrency exchange FTX in a hearing on December 14.

Regulators have expressed worry about the effects of the historic FTX collapse on the cryptocurrency market. Federal authorities in the United States have seized $697 million in assets that belonged to Sam Bankman-Fried, the founder and former CEO of the defunct cryptocurrency exchange, FTX.

There will be some modifications since this is the second hearing that the Senate Banking Committee has planned since the start of the 118th Congress. Senator Brown will continue to serve as the committee’s head, while Senator Tim Scott will replace Senator Pat Toomey as the panel’s ranking member. One of Scott’s legislative priorities was the creation of a framework for regulating cryptocurrency.

A bipartisan legal regime for cryptocurrencies is alleged to have been prioritised by Senator Tim Scott (R-SC) on Thursday.

Chairman Sherrod Brown (D-Ohio) wrote Treasury Secretary Janet Yellen in November that he wanted to start making serious efforts to have the U.S. government regulate cryptocurrency.

After FTX filed for bankruptcy, committees in the House and Senate scheduled hearings, which had an effect on many American retail investors. A second hearing on FTX is anticipated from the House Financial Services Committee sometime in 2023.

Shortly before his arrest in the Bahamas, former FTX CEO Sam Bankman-Fried was slated to speak at the House Financial Services Committee hearing. Who will speak during the hearing in February is unknown.

Hollywood celebrity Ben McKenzie, Shark Tank star and investor Kevin O’Leary, the Cato Institute’s Jennifer Schulp and law professor Hilary Allen all testified in the December hearing.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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