On March 6, White House press secretary Carine Jean-Pierre questioned whether the president was monitoring the evolving situation around stressed crypto-friendly bank Silvergate.

“While we do not comment specifically on Silvergate, it is clear that they are the latest company to experience significant problems in the cryptocurrency space,” said a spokeswoman.

“In recent weeks, banking regulators have issued guidelines on how banks can protect themselves from the risks associated with cryptocurrencies. A president who has repeatedly asked Congress to take action to protect

“And he will continue to do so. We have not spoken to other cryptocurrency companies, so I will not speak to this particular company. I recognize the

FTX Collapse Leads to Silvergate Asset Liquidation

Last November, popular cryptocurrency exchange FTX collapsed, leaving creditors with billions of dollars in outstanding debt. His one of those creditors was Silvergate, the bank that served FTX. As a result of the FTX bankruptcy and the subsequent withdrawal of customer deposits, Silvergate has been forced to liquidate his $5.2 billion worth of assets in early 2023.

The White House Stance on Cryptocurrencies and Financial Regulation

The White House has been closely monitoring the cryptocurrency industry and its impact on financial markets. In recent months, there has been a growing call for greater regulation of cryptocurrencies to prevent the collapse of FTX and its impact on companies like Silvergate.

President Biden’s administration calls for crypto exchanges to report transactions over $10,000 to the Internal Revenue Service (IRS) and impose tougher Know Your Customer (KYC) requirements to prevent money laundering and other illegal activities. proposed a new regulation requiring

The proposed regulation has been met with both support and opposition from the cryptocurrency community. Some believe stronger regulation is necessary to protect consumers and deter fraud, while others argue that it could stifle innovation and undermine industry growth.

In September 2022, the White House will release Cryptocurrency regulatory framework based on President Biden’s previous Executive Order.

The executive order highlights concerns from the Biden administration about digital assets and their interdependence with traditional financial markets, which could cause economic instability through contagion effects.

According to the framework:

“The President has asked Congress to amend the Bank Secrecy Act, the Data Loss Prevention Act, and the Act Prohibiting Unauthorized Money Transfers, to apply explicitly to digital asset service providers, including digital asset exchanges and non-fungible token (NFT) platforms. We will consider whether to ask for

By Jules

Leave a Reply