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Senator Warns Crypto Poses Systemic Risk to Banking Sector

Senator Warns Crypto Poses Systemic Risk to Banking Sector

Author:

Global Cryptocurrency

Published:

2026-01-15 18:01:01

20

3

BTCCSquare news:

Senator Richard Blumenthal has intensified scrutiny of cryptocurrency's role in financial stability, linking last year's banking collapses to crypto-related exposures. The warning comes as Senate committees prepare to debate new market structure legislation for digital assets.

Silicon Valley Bank's failure wasn't an anomaly but a harbinger, according to findings from a 292-page Senate investigation. The report details how crypto-linked deposits and opaque balance sheet items evaded regulatory detection until crisis struck.

Audits failed to capture the velocity risk of crypto-influenced deposits at SVB, Signature Bank, and First Republic—all three institutions received clean bills of health shortly before collapsing. "Tech money comes fast but disappears even faster," Blumenthal cautioned in a Fox News op-ed.

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