According to White House press secretary Karine Jean-Pierre, the Biden administration is closely watching Silvergate Bank’s situation. Speaking at a press briefing on Monday, Jean-Pierre compared Silvergate’s woes with other crypto companies and noted that President Joe Biden has urged Congress to take action in the crypto space.
While Jean-Pierre didn’t comment specifically on Silvergate, she acknowledged that several crypto companies have faced “significant issues” in recent weeks. She also cited guidelines from federal bank regulators warning of the risks that cryptocurrencies could pose to banks and other financial institutions.
“In recent weeks banking regulators have released guidelines on how banks should protect themselves from risks associated with crypto,” she said. “As you know, this is a president that has repeatedly called on Congress to take action to protect everyday Americans from the risk posted by digital assets and he will continue to do so.”
Silvergate recently announced that it would be shutting down its Silvergate Exchange Network (SEN), a 24/7 internal settlement tool that allowed customers to conduct transactions between each other outside of normal banking hours. The move came shortly after the bank said it would delay filing its annual report and disclosed that it may be facing investigations from bank regulators, the Department of Justice, and others.
Following the announcement, the bank’s stock plummeted by 58% in a single day, though it has since stabilized somewhat. Several of Silvergate’s top crypto clients have also suspended their business with the bank.
Jean-Pierre declined to comment on Silvergate specifically, but emphasized that the administration was monitoring the situation closely.
“[I] won’t speak to this particular company as we have not on other cryptocurrency companies, but we’re going to continue monitoring reports, and currently we’re aware of the situation,” she said.
The administration’s stance on crypto has been a subject of much discussion in recent months, with many observers speculating on what actions Biden may take to regulate the space. Some have argued that a more comprehensive regulatory framework is needed to protect investors and ensure the stability of the financial system, while others worry that excessive regulation could stifle innovation and growth.
For now, it seems that the administration is content to monitor the situation and wait for Congress to take action. It remains to be seen how Silvergate’s troubles will affect the broader crypto industry, and whether the Biden administration will take a more active role in regulating it.
Marine Corps Veteran-turned-national-tv-personality Eric Mitchell is a world leading expert in sports media, regularly appearing on the world’s largest outlets from BBC, MSNBC, Fox News, Bloomberg, CNN and more. His signature blend of snark and industry expertise landed him columns at none other than RollingStone, GritDaily, PopWrapped, Disrupt — and most recently — Editor in Chief at NFT Today Magazine. When he’s not making media appearances or running his empire at LifeFlip Media, he can be found entertaining his thousands of loyal followers on social media through his authentic filter-free content.
