Evidence Grows that Crypto and Federally-Insured Banks Are a Combustible Mixture

by Pam Martens and Russ Martens
Wall Street on Parade

The fallout from the collapse of the crypto exchange FTX and its missing billions of dollars of customer funds has, finally, galvanized some members of Congress to push back against the swarms of crypto lobbyists whose activities are clearly impacting the safety and soundness of U.S. banks.

On Monday, Senator Sherrod Brown (D-OH), Chair of the Senate Banking Committee, along with Senators Jack Reed (D-RI), Chris Van Hollen (D-MD), and Tina Smith (D-MN), sent a letter to federal banking regulators warning that SoFi, a federally-insured bank, potentially posed a risk to safety and soundness as a result of its digital asset trading activities. The Senators wrote as follows:

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