Banks working with the crypto industry are acting recklessly, since digital assets are extremely unstable. Such an opinion expressed Colorado Senator Michael Bennett.
At a Senate Finance Committee hearing on March 16, he drew attention to the situation with Signature Bank. In his opinion, the financial institution failed due to a friendly attitude towards digital assets.
The politician compared crypto companies to pharmacies in several states selling marijuana for medical purposes. Bennett noted that such activities are “even more stable” than digital assets.
“Banks are prohibited from doing anything with marijuana, so they decided to serve crypto companies, from which about 20% of deposits came. Digital assets are a notoriously unstable thing that no one here understands,” the senator said.
Earlier, Signature Bank board member Barney Frank said the institution had resolved the outflow of deposits before regulators intervened. In his opinion, the authorities deliberately took such tough measures to scare financial institutions away from working with digital assets.
Recall, the New York State Department of Financial Services assured that the closure of Signature Bank was not related to its crypto business.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Banks working with the crypto industry are acting recklessly, since digital assets are extremely unstable. Such an opinion expressed Colorado Senator Michael Bennett.
At a Senate Finance Committee hearing on March 16, he drew attention to the situation with Signature Bank. In his opinion, the financial institution failed due to a friendly attitude towards digital assets.
The politician compared crypto companies to pharmacies in several states selling marijuana for medical purposes. Bennett noted that such activities are “even more stable” than digital assets.
“Banks are prohibited from doing anything with marijuana, so they decided to serve crypto companies, from which about 20% of deposits came. Digital assets are a notoriously unstable thing that no one here understands,” the senator said.
Earlier, Signature Bank board member Barney Frank said the institution had resolved the outflow of deposits before regulators intervened. In his opinion, the authorities deliberately took such tough measures to scare financial institutions away from working with digital assets.
Recall, the New York State Department of Financial Services assured that the closure of Signature Bank was not related to its crypto business.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
