Michigan Rep. Bill Huizenga, who chairs the US House Subcommittee on Oversight and Investigations, has called out the Securities and Exchange Commission (SEC) for failing to file the appropriate documents related to the timing of the charges and arrest of former FTX CEO. Sam Bankman-fried.
At a June 22 hearing on SEC oversight, Rep. Huizenga saying โ100% of the documentsโ the commission had provided on the charges and SBF's arrest were publicly available, suggesting an inadequate response to the congressional committee. The lawmaker criticized the SEC for missing the February 24 deadline to submit documents that allegedly raised โserious questions about the SEC process and cooperation with the Department of Justiceโ regarding the charges and arrest of SBF.
Rep. Huizenga suggested that the documents provided by the SEC included little more than public briefings on "how the SEC and the Department of Justice worked together" on the SBF case. Megan Barbero, general counsel for the SEC, responded that submitting such documents to the committee was simpler since they "do not require a vote of the committee" and others were a "significant process and commitment."
"The challenge here to balance the concerns is that committee staff have identified as a priority the commission's action memorandum, which is the same document that contains the information that could undermine our civil enforcement action and the parallel criminal investigation," said Barber.
#occurring now: @RepHuizenga summons the Subcommittee on Oversight and Investigations to a hearing titled "SEC Oversight."
Tune in https://t.co/QaGMDMUJ2F pic.twitter.com/9qC69GLfVp
โ Republican Party of Financial Services (@FinancialCmte) June 22, 2023
Although not always along the same lines of questioning as Rep. Huizenga, other lawmakers have invoked FTX and Bankman-Fried when discussing SEC oversight. Texas Rep. Pete Sessions asked for details about a reported meeting between Gary Gensler and SBF, alleging that the SEC chairman had "personal access" to the former CEO of FTX. Texas Rep. Al Green called for regulation of crypto companies like FTX, which "destroy[ed] the dreams of investors with ignoble schemesโ and also asked Gensler to testify.
Related: Binance, Binance.US, and CZ Allege the SEC Made โMisleadingโ Statements About Exchange Assets
The SEC investigation stemmed from Bankman-Fried being scheduled to testify before the House Financial Services Committee hearing on December 13. He was based in the Bahamas at the time FTX filed for bankruptcy in November 2022 and the criminal investigation into his alleged misconduct was underway. Before Bankman-Fried could testify in Congress, he was arrested in the Bahamas and later extradited to the United States.
Authorities are planning two criminal trials for Bankman-Fried for 8 criminal counts and 5 counts scheduled to begin in October 2023 and March 2024, respectively. The SEC and the Commodity Futures Trading Commission also filed separate civil lawsuits against SBF, but those cases have been postponed until criminal proceedings has been completed.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Say?
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