Banks serving the crypto industry are acting imprudently, as digital assets are extremely volatile. This view высказал Senator Michael Bennet of Colorado.
At a Senate Finance Committee hearing on March 16, he drew attention to the situation at Signature Bank. In his view, the financial institution collapsed due to its friendly attitude toward digital assets.
The politician compared crypto companies to pharmacies in several states that sell marijuana for medical purposes. Bennet noted that such activity “is even more stable” than digital assets.
“Banks are prohibited from engaging in marijuana-related activity, so they decided to service crypto companies, which accounted for about 20% of deposits. Digital assets are an inherently unstable thing that no one here understands,” the senator said.
Earlier, a member of Signature Bank’s board, Barney Frank stated, the institution resolved the outflow of deposits before intervention by regulators. In his view, authorities deliberately took such tough measures to deter financial institutions from dealing with digital assets.
As noted, the New York Department of Financial Services stated that the closure of Signature Bank was not connected to its crypto business.