FTX Update | Two hearings in December, CFTC Chairman still does not deny SBF's support for the bill

With FTX entering bankruptcy proceedings, the focus of the event has gradually shifted to the subsequent regulatory actions, apart from some anonymous rumors that are still circulating.

Is FTX Depositing Funds into Alameda Account?

Bloomberg cited anonymous sources indicating that SBF mentioned FTX's connection with regulated banks through its subsidiary trading firm Alameda Research.

This is because banks are unwilling to deal directly with exchanges like FTX, so Alameda has opened a fiat account with the crypto-friendly bank Silvergate, highlighting the complex relationship between FTX and Alameda once again.

Previously reported, SBF acknowledged this in private messages, and the chaotic accounting led to Alameda "inadvertently" misappropriating user funds.

CFTC Chair Does Not Deny SBF's Proposal

This year, SBF defended the "No-Intermediary Trading Proposal" at a hearing, proposing to consolidate trading and clearing roles in traditional finance to replace traditional futures commission merchants (FCMs) with automated clearing.

According to The Block, CFTC Chair Rostin Behnam believes that this move would give the CFTC more jurisdiction over spot markets and the crypto space to ensure exchanges do not use customer funds, similar to the FTX incident. However, he also mentioned:

He does not shy away from admitting frequent meetings with the FTX team:

FTX and their management frequently visit, as CFTC Chair, I would like to be extensively involved in this to ensure no details are missed in the process, and the CFTC has a legal obligation to any application.

ECB President: Push for MiCA 2.0

Previously reported, the EU's comprehensive regulatory framework for digital assets, the Markets in Crypto Assets (MiCA), will come into effect in 2024.

ECB President Christine Lagarde stated at the European Parliament following the FTX incident that there should be broader regulation under MiCA for the crypto space, including crypto activities beyond the scope of MiCA, such as DeFi.

She emphasized the need to push for MiCA II and reiterated that the digital euro is the right choice for digital payments for the European public.

FTX Hearings on 12/1 and 12/13

Senate

The Senate Agriculture Committee will hold a hearing on 12/1 titled "Why Congress Needs to Act: Lessons Learned from the FTX Collapse" where CFTC Chair Rostin Behnam will be present.

House of Representatives

The House Financial Services Committee will also hold an FTX hearing on 12/13 titled "Investigating the Collapse of FTX, Part I", with the committee yet to announce the witness list, and Republican Congressman Patrick McHenry expressing hopes for SBF and Binance to attend.