According to recent reports, the White House is closely monitoring the situation at Silvergate, a bank that is facing significant issues. The bank has been impacted by the collapse of FTX and is currently in a difficult financial situation, resulting in the bank cutting staff, discontinuing its crypto payments network, and experiencing a decline in its stock value. The administration sees Silvergate’s struggles as an example of the challenges faced by crypto-businesses.
White House press secretary Karine Jean-Pierre confirmed that the administration is closely monitoring the situation at Silvergate, indicating that the bank’s troubles have not gone unnoticed in the highest office in the United States. While the situation at Silvergate is challenging, the administration’s focus on the issue could lead to positive developments in the regulation of cryptocurrencies in the future.
During a press briefing, White House press secretary Karine Jean-Pierre commented on the challenges faced by some crypto companies, including Silvergate. She confirmed that the administration is aware of the situation and is monitoring reports closely. However, she declined to comment specifically on Silvergate.
Jean-Pierre noted that Silvergate is not the only company in the crypto industry to experience significant issues. She suggested that the administration is taking a broader view of the challenges facing the industry, rather than focusing on individual companies. While she did not provide further details, her comments suggest that the administration is paying close attention to the crypto industry and is monitoring developments closely.
In recent times, there have been several high-profile bankruptcies in the crypto industry, such as FTX, TerraLabs, Three Arrows Capital, and Celcius. As a result, U.S. regulators are taking a closer look at the risks associated with cryptocurrencies.
The SEC has been criticized by the industry for its efforts to regulate the crypto space. However, it is believed that these directives may have been influenced by President Joe Biden, who has repeatedly called on Congress to address the risks posed by cryptocurrencies to Americans.
According to White House press secretary Karine Jean-Pierre, President Biden has been consistent in his stance on crypto regulation. He believes that it is important to mitigate the risks associated with cryptocurrencies to protect Americans. Therefore, the administration is taking measures to address these concerns and ensure that the crypto industry is properly regulated.
During a press briefing, White House press secretary Karine Jean-Pierre emphasized that President Biden has consistently called on Congress to protect Americans from the risks associated with digital assets. While she did not comment on any specific company, including crypto companies, she acknowledged that the administration is monitoring the situation and is aware of the reports.
Jean-Pierre’s use of the phrase “take action” is significant because several CEOs of crypto businesses have expressed concerns about the SEC’s strict regulation of the industry. They believe that the SEC should focus on developing a comprehensive legislative framework rather than enforcing rules that are seen as overly restrictive.
While the administration is taking steps to address the risks associated with cryptocurrencies, it is unclear what specific actions it will take. However, Jean-Pierre’s comments suggest that the administration is committed to protecting Americans and will continue to monitor the situation closely.
On March 9th, 2022, President Joe Biden signed an Executive Order aimed at promoting responsible development of digital assets. While it was not a specific plan, it was seen as a call to action for the crypto industry.
The collapse of established crypto-related businesses, such as Silvergate, has had a negative impact on investors and is starting to affect the development of the entire crypto ecosystem. As Silvergate faces the possibility of collapse, it is evident that U.S. regulators are becoming increasingly unwilling to allow unregulated crypto operations.
This development is significant for anyone interested in the future of the crypto industry. It highlights the need for responsible development and regulation of digital assets to ensure the protection of investors and the advancement of the ecosystem.
