US lawmakers question federal regulators on banks’ ties to crypto firms By Cointelegraph
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Two members of the United States Senate have called on the heads of federal financial regulators to address “ties between the banking industry and cryptocurrency firms” in the wake of FTX’s collapse.
In letters dated Dec. 7 to Federal Reserve chair Jerome Powell, acting Comptroller of the Currency Michael Hsu, and Federal Deposit Insurance Corporation acting chair Martin Gruenberg, Senators Elizabeth Warren and Tina Smith — both on the Senate Banking Committee — acknowledged that the crypto industry was not so “deeply integrated” with traditional financial institutions to severely impact markets after FTX’s bankruptcy filing. However, the two lawmakers pointed to reports suggesting ties between FTX and the Washington-based Moonstone Bank as well as stablecoin issuer and the Bahamas-based Deltec Bank with seemingly no oversight from federal regulators.
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Two members of the United States Senate have called on the heads of federal financial regulators to address “ties between the banking industry and cryptocurrency firms” in the wake of FTX’s collapse.
In letters dated Dec. 7 to Federal Reserve chair Jerome Powell, acting Comptroller of the Currency Michael Hsu, and Federal Deposit Insurance Corporation acting chair Martin Gruenberg, Senators Elizabeth Warren and Tina Smith — both on the Senate Banking Committee — acknowledged that the crypto industry was not so “deeply integrated” with traditional financial institutions to severely impact markets after FTX’s bankruptcy filing. However, the two lawmakers pointed to reports suggesting ties between FTX and the Washington-based Moonstone Bank as well as stablecoin issuer and the Bahamas-based Deltec Bank with seemingly no oversight from federal regulators.
Continue Reading on Coin Telegraph
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