ICYMI Op-Ed: Crypto is a Gamble our Financial System Doesn't Need

[WASHINGTON, DC] - U.S. Senator Richard Blumenthal (D-CT) authored an op-ed in FOX News today, raising concerns about the potential negative impact of crypto market legislation on the U.S. financial system:

"In racing to finish the crypto industry's wish list before midterms, Congress should remember what happened the last time crypto impacted legacy banking. We've seen this movie before - and taxpayers paid for the tickets," Blumenthal wrote.

Pointing to the findings of an investigation he led into the cozy audits three American banks received before their collapse, Blumenthal continued, "Silicon Valley Bank, Signature Bank and First Republic Bank raked in profits when venture capital and crypto boomed, but they all learned that tech money comes fast but leaves even faster - threatening the stability of banking and leaving taxpayers and investors on the hook for losses. These bank failures provide a chilling warning for anyone backing the crypto lobby's efforts to further cement the unsavory world of crypto into the American economy."

Blumenthal continued, "The resulting turmoil threatened major technology companies and millions of depositors, ultimately requiring federal intervention to the tune of $340 billion to quell fear of contagion. Even then, more than $54 billion in stocks and bonds became worthless when the banks collapsed, including $700 million that one pension fund lost in a single day. Unless Congress acts to put some guardrails on the recently passed GENIUS Act, it will only be a matter of time before the industry is clamoring for bailouts again."

"If lawmakers fail to confront the lessons of 2023, they will be locking in the same frailties that forced taxpayers to step in once before - and will inevitably be asked to do so again," Blumenthal concluded.

Read the full op-ed here.

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