Home » US Sen. Cynthia Lummis Criticizes Signature Financial institution Government for Blaming Crypto for Its Downfall

US Sen. Cynthia Lummis Criticizes Signature Financial institution Government for Blaming Crypto for Its Downfall

by CoinVeem

Supply: screenshot of Senate Banking Committee listening to

Sen. Cynthia Lummis mentioned she discovered it disappointing {that a} former crypto-friendly Signature Financial institution government will not be taking the blame for the failed financial institution, whereas criticizing his wordiness about crypto. 

The Wyoming Republican, who has advocated for crypto, questioned Signature Financial institution’s former Chairman Scott Shay and former President Eric Howell on Tuesday at a Senate Banking Committee listening to. 

“It seems like there was a whole lot of deflection of blame onto these explicit depositors that deal in digital property and onto regulators, however you haven’t accepted any blame your self,” Lummis mentioned. 

Signature Financial institution failed in March — considered one of three banks, together with Silicon Valley Financial institution, to fail inside days of one another. 

Former Silicon Valley Financial institution CEO Gregory Becker additionally testified on Tuesday on the listening to.

The New York Division of Monetary Providers announced on March 12 that it had taken possession of Signature Financial institution to guard depositors.

In ready testimony, Shay famous digital property’ volatility and regulators’ considerations and mentioned the financial institution then took steps to “considerably cut back its digital asset deposits.”

“Sadly, a collection of really extraordinary and unprecedented occasions unfolded shortly,” Shay mentioned. “On March 7, a financial institution with robust ties to the digital asset sector introduced it was going out of enterprise, and three days later, on March 10, a second financial institution was seized by regulators. After which, inside just some hours, our depositors withdrew $16 billion from the financial institution.”

Lummis famous Shay’s use of digital property in that testimony on Tuesday,

Shay mentioned he didn’t level to digital property being a selected trigger or not. 

“You talked about in your testimony digital property 10 instances implying that digital property have been a driver of Signature Financial institution’s collapse,” Lummis mentioned. 

Chokepoint 2.0?

Some crypto advocates on Twitter have blamed the federal government for deliberately targeting the crypto sector with financial institution closures. 

NYDFS Superintendent Adrienne Harris pushed again on that sentiment, talking on Signature Financial institution at a convention final month.

“The concept that the taking possession of Signature was about crypto and that is ‘Choke Level 2.0’ is de facto ludicrous,” Harris was quoted as saying on the conference

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