• US regulators react to the collapse of Silvergate bank, hinting at stricter crypto regulations.
• Prominent crypto personalities disagree with Senator Warren’s opinion on the crypto industry.
• Senator Sherrod Brown suggests the upcoming months and years may bring tighter policies for cryptocurrencies.
US Regulators React to Silvergate Bank Collapse
US regulators are responding to the recent collapse of Silvergate Bank, a popular banking service for cryptocurrency users, by hinting that regulatory policies might be tightened in the near future.
Senator Elizabeth Warren Cautions Against Crypto Risk
Senator Elizabeth Warren expressed her disappointment with the bank’s collapse but noted that it was predictable due to its „risky, if not illegal activity.“ She also suggested that customers should be made whole and that regulators should take action against potential risks in the crypto industry.
Crypto Figures Push Back on Warren’s Comments
Many prominent figures in the cryptocurrency space have disagreed with Warren’s comments, claiming that Silvergate’s failure had nothing to do with cryptocurrencies. Scott Melker, a popular trader in this space, argued that Silvergate failed solely because they had more frictionless reserves than other banks.
Senator Sherrod Brown Suggests Tighter Policies Ahead
Chairman of the Senate Banking Committee, Senator Sherrod Brown echoed Warren’s sentiment and suggested that there might be tighter regulations for cryptocurrencies in upcoming months and years ahead. He urged policy makers to respond appropriately given these events.
Conclusion
The recent collapse of Silvergate Bank has sparked concerns among US regulators and policymakers over potential risks associated with digital currencies. While some prominent figures in the crypto space disagree with Senator Elizabeth Warren’s views on this topic, it appears there may be stricter policies implemented soon as both she and Senator Sherrod Brown have cautioned against such risks.