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Investing.com – Binance’s role in the sudden collapse of FTX, an event that sent reverberations around the crypto markets, would be subject to scrutiny by Congress.
“It’s serious. I think it’s a major event,” Rep. Patrick McHenry said while acknowledging that Binance’s role in the sudden collapse will be one of the focal points of an announced December hearing. this morning. The North Carolina Republican will likely be the next chairman of the House Financial Services Committee.
“The first step is a bipartisan call for a hearing. We will definitely prioritize this issue at the next Congress.”
The bankruptcy of FTX highlights the need for regulation, particularly regarding stablecoins. McHenry added that the collapse of FTX has given urgency to further legislation on defining digital assets and regulating centralized exchanges.
“We’ve had these conversations about what I think are the second, third and fourth order decisions that we need to make as a committee to bring clarity. So I think the first step is to clarify what a digital asset. And that means making a clear legal distinction here.”
Binance has denied any direct role in FTX’s downfall. The company argued that the cause of FTX’s bankruptcy was financial irregularities and possible fraud in written comments to a UK parliamentary committee that asked for details about the cryptocurrency exchange’s role in the collapse of FTX. their rival.