• The White House press secretary has confirmed that the Biden administration is monitoring the issues at Silvergate Bank.
• President Joe Biden has called for Congress to take action against cryptocurrencies, due to the recent collapses of FTX and other crypto-related businesses.
• The SEC has stepped up its efforts to protect Americans from the risks posed by digital assets.
White House Monitoring Silvergate
The White House press secretary Karine Jean-Pierre recently confirmed that President Joe Biden’s administration is paying close attention to the situation with Silvergate Bank, a crypto-friendly bank hit hard by the collapse of FTX and other crypto-related bankruptcies.
Biden Calls for Crypto Regulation
President Joe Biden has urged Congress to mitigate the risks posed by cryptocurrencies and take action to protect everyday Americans from their potential dangers. In response, U.S. regulators have been on high alert, issuing stricter guidelines on how banks should protect themselves from crypto-related risks.
In light of these events, Silvergate had been forced to cut staff, discontinue its SEN payments network, and shed stock value rapidly as it continues its downward spiral. This has not gone unnoticed in Washington D.C., as Jean-Pierre noted during her press briefing on March 6th that this was yet another example of a cryptocurrency business facing significant issues.
SEC Takes Action
The SEC has taken a hard stance against digital assets in general, leading many within the industry to criticize their directives harshly; however, it appears they are acting upon orders from President Biden himself in order to ensure consumer safety when dealing with cryptocurrencies.
It remains unclear what actions will be taken regarding Silvergate or other cryptocurrency businesses going forward; however, it is clear that President Biden’s administration is taking this issue seriously and working towards protecting Americans from any possible risks associated with digital asset investments.