U.S. Senator Blames Unstable Crypto for Bank Collapse
• U.S. Senator Michael Bennet suggested banks involving themselves in the crypto industry were not making “prudentially sound” decisions, which may have been a factor in the collapse of Signature Bank.
• Former House of Representatives member Barney Frank suggested that the New York State Department of Financial Services (NYDFS) closed Signature as part of a show of force and that there was no indication of problems at Signature prior to this action.
• The widespread banking jitters were only possible because Senator Bennet and others passed a banking deregulation bill in 2018, which he voted for, curtailing parts of the Dodd-Frank Act that called on banks to lend responsibly and hold adequate cash on hand.
Overview
As regulators search for a scapegoat to pin the recent financial failures on, U.S. senator Michael Bennet has suggested crypto is partly to blame due to its instability compared to marijuana dispensaries which remain frozen out from the financial system. This suggestion comes after three major banks collapsed in the U.S., with former House of Representatives member Barney Frank suggesting it was due to an overzealous move by the New York State Department of Financial Services (NYDFS). Additionally, it was revealed that bank runs such as those experienced by Silicon Valley Bank could be linked back to a banking deregulation bill passed in 2018 by Senator Bennet and other senators which weakened parts of the Dodd-Frank Act meant to ensure liquidity and responsible lending practices by banks.
The Collapse Of Three Major Banks
The dust is settling after three major banks collapsed in the U.S., leaving many searching for someone or something to blame for these catastrophic events taking place within our financial system. Regulators have had their eye on crypto as it allows companies involved in this industry more freedom than those providing services through legal marijuana dispensaries across many states, including Colorado where Bennet serves as Democratic representative for Colorado .
Banking Deregulation Bill & Senate Finance Committee Hearing
At a hearing held by the Senate Finance Committee on March 16th, Sen Bennett expressed his opinion on how crypto isn’t “even as stable as the marijuana industry” when discussing his belief that unwise decisions made by banks involving themselves with cryptocurrency could have played a role in one particular bank’s collapse – Signature Bank – despite former House Representative member Barney Franks suggestion that this wasn’t actually related but rather down to an overzealous move from NYDFS instead.. This theory can also be linked back Senate Bill 2155 which was passed into law in 2018 with support from Sen Bennett amongst others , weakening certain provisions included within The Dodd-Frank Act surrounding liquidity management and responsible lending practices across all banking institutions operating within America today .
Senator Asked If He Regretted Vote On Banking Deregulation Bill
When questioned about whether he regretted his vote regarding Senate Bill 2155 during an interview , Sen Bennett failed to directly answer yet shifted attention away from himself , pointing towards corrupt activities conducted by short sellers and other sitting Senators who coordinated bank runs resulting from unexpected liquidation requests worth $12 billion dollars reported at Silvergate .
Conclusion
Ultimately , while placing blame on crypto for causing bank collapses may seem like an easy way out , there remains many questions being raised regarding why exactly these events took place despite legislation designed protect against such occurrences . It should be noted however , that these issues are certainly not solely down too unstable cryptocurrency but rather a combination off factors ranging from overzealous regulatory bodies , questionable decision making processes implemented across numerous banking organizations alongside ineffective legislation seemingly failing cope with modern challenges posed against traditional finance today .