US Senator Criticizes Banks for Ties with Crypto Industry

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Colorado Senator Michael Bennet has expressed his opinion that banks working with the crypto industry are being reckless, as digital assets are incredibly unstable.

At a Senate Finance Committee hearing on March 16, he made the comparison of crypto companies to pharmacies in several states that sell marijuana for medical purposes, arguing that the latter is “even more stable” than digital assets.

Bennet further stated that banks are prohibited from doing anything with marijuana, and that 20% of deposits come from crypto companies.

Barney Frank, a board member of Signature Bank, attested that the institution had resolved the outflow of deposits before regulators intervened, but he suspects the authorities deliberately took such tough measures to scare financial institutions away from working with digital assets.

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