U.S. Senators: Call on Federal Financial Regulators to Address Relationship Between Banking and Crypto Firms

U.S. Senators Elizabeth Warren and Tina Smith say federal financial regulators need to address the relationship between the banking industry and crypto firms.

"While the banking system has so far been relatively unscathed by the latest crypto crash, FTX’s collapse shows that crypto may be more integrated into the banking system than regulators are aware." said Warren and Smith.

And they pointed to reports suggesting ties between FTX and the Washington-based Moonstone Bank as well as stablecoin issuer Tether and the Bahamas-based Deltec Bank with seemingly no oversight from federal regulators.