Dec 8 (Reuters) – U.S. Senators Elizabeth Warren and Tina Smith are demanding an accounting from the Federal Reserve and different U.S. monetary regulators of banks’ cryptocurrency exercise and ties to the business following the implosion of crypto alternate FTX.
“Whereas the banking system has thus far been comparatively unscathed by the newest crypto crash, FTX’s collapse exhibits that crypto could also be extra built-in into the banking system than regulators are conscious,” the lawmakers wrote to the chiefs of the Fed, the Federal Deposit Insurance coverage Company (FDIC), and the Workplace of the Comptroller of the Foreign money in letters dated Wednesday and launched by Warren’s workplace on Thursday.
“We write to precise concern … and to inquire about how your company assesses the dangers to banks and the banking system related to these relationships,” wrote the senators, each Democrats on the Senate Banking Committee.
The letters requested for particulars on oversight of banks’ cryptocurrency buying and selling and loans to crypto companies, and requested if regulators plan to conduct a evaluate of crypto companies’ relationships with banks. They gave regulators two weeks to answer their requests.
Lawmakers have launched inquiries into the cryptocurrency business following the collapse of Bahamas-based FTX, which filed for chapter final month after the disappearance of at the least $1 billion of buyer funds.
Reporting by Ann Saphir; enhancing by Jonathan Oatis
: .