In December, there will be a bipartisan hearing in Congress to discuss the fallout from the FTX.
Congresswoman Maxine Waters (Democratic Party of California) and Representative Patrick McHenry (Republican Party of North Carolina) issued a joint statement on November 16, 2022, saying that a bipartisan hearing has been announced to investigate the "collapse of FTX and the broader consequences for the digital asset ecosystem." The statement was published on November 16, 2022.
According to the joint statement released by Waters and McHenry, the United States House Financial Services Committee "expects to hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities, among others."
Congresswoman Maxine Waters issued a statement in which she said that the collapse of the FTX cryptocurrency exchange had caused "tremendous harm" to more than one million users. "Many of these users were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds," Waters said. The Democrat from California continued, saying:
Sadly, this occurrence is just one instance out of a large number of examples of bitcoin systems that have failed in just the past year. Because of this, it is with the utmost sense of urgency that I, together with my colleague and Ranking Member McHenry, am announcing the intention of the Committee to schedule a hearing to investigate the failure of FTX.
Additionally, Waters took the initiative to investigate and report on the meme stock and Gamestop market incident that occurred the previous year. In reference to the failure of FTX, the Republican representative McHenry emphasized that the House Financial Services Committee intends to investigate the FTX debacle thoroughly.
According to McHenry, "Oversight is one of the most critical functions of Congress, and we must get to the bottom of this for the benefit of FTX's customers and the American people." McHenry continued by saying, "It is essential that we hold bad actors accountable in order for responsible players to be able to harness technology and build a more inclusive financial system."
FTX submitted their petition for protection under the bankruptcy laws on November 11, 2022, after the company had previously been valued at $32 billion. In addition, after the registration of the file, on the same day it was feared that over half a billion dollars worth of crypto tokens had been stolen from wallets associated with FTX.
