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This week Capital Hill had two hears on FTX and its collapse and what could or can be done to address this issue. Even though these hearings were on back to back days (Tuesday and Wednesday) they could not have been more different. Before people worry and think it was due to Members of Congress being out of touch or just hating crypto it was actually something that occurred by design.
The hearing on Tuesday was held by the House Financial Services Committee and it served as a fact-finding hearing and was designed for Representatives to really learn more about what occurred than anything else. While touch questions were asked to the current CEO of FTX John Ray III for the most part his testimony served as to tell Congress what he was dealing with and what is believed to have gone on behind the scenes. This type of hearing and testimony is critical for legislators to have so that they are aware of things and can ask questions to see what would possibly work and what would end up backfireing.
On Wednesday the Senate Banking Committee held their hearing and if you thought that you could see on and understand how they both went well that was the furtherest thing from the truth. In general the Senate is a much more critical or skeptical part of Congress and they are the branch that is designed to slow things down to make sure they are thoroughly vetted and not just hap hazzardly rammed through. It was why the tone and the questioning that occurred in this hearing was much more pointed and the witnesses were people who are generally very supportive of the industry.
Overall though these hearing were more about showing the Congress is starting to pay attention and set a tone for next Congress more than anything else. This was a lot of posturing since there is no way to pass anything this year in this vein. I would expect to see in the next two weeks or so legislative plans start to emerge about how this is going to be tackled next year but only time will tell.
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