Connect with us

Business

US Senators Ask Bank Regulators to ‘Review’ SoFi’s Crypto Listings

News Agencies

Published

on

U.S. senators Sherrod Brown (D-Ohio), Jack Reed (D-R.I.), Chris Van Holland (D-Md.) and Tina Smith (D-Minn.) wrote open letters to digital finance company SoFi and several bank regulators, asking for a “review” of SoFi’s crypto offerings.

The letter to SoFi expressed concerns about the company expanding its crypto business, how it holds customers’ cryptos and its listing of dogecoin (DOGE), which a blog post on the company’s website cited as an example of a “pump and dump” coin.

The lawmakers asked SoFi to explain how it lists cryptocurrencies for sale, how it addresses customer complaints and how it determines “the appropriate credit, market and operational risk capital requirements for digital asset exposures.”

The letter to the company also asked if SoFi lists any cryptocurrencies that are securities, and, if so, whether it’s licensed to offer securities.

Advertisement

A separate letter addressed to Federal Reserve Vice Chair for Supervision Michael Barr, Acting Federal Deposit Insurance Corporation Chair Martin Gruenberg and Acting Comptroller of the Currency Michael Hsu said SoFi “committed not to ‘expand [its] impermissible activities’” but that the company “has apparently expanded its digital asset retail operations.”

“SoFi’s digital asset activities pose significant risks to both individual investors and safety and soundness. As we saw with the crypto meltdown this summer, where crypto-assets lost over $1 trillion in value in a matter of weeks, contagion in the banking system was limited because of regulatory guardrails,” the letter said. “In the event of crypto-related exposures at SoFi Digital Assets ultimately require its parent company, bank holding company, or affiliated national bank to seek emergency liquidity or other financial assistance from the Federal Reserve or FDIC, taxpayers may be on the hook.”

In a statement, a SoFi spokesperson said the company allows its members to buy and sell cryptocurrencies but does not provide any other type of crypto-related financing activity.

Advertisement

“SoFi takes our regulatory and compliance commitments seriously, including our non-bank operations within the digital assets space,” the spokesperson said. “We believe we have been fully compliant with the mandates of our bank license and all applicable laws. Additionally, we maintain consistent, constructive dialogue with each of our regulators. Cryptocurrency remains a non-material component of our business. We look forward to sharing the requested information with the senators in a timely fashion.”

The spokesperson also said SoFi had no exposure to FTX, the FTT token, Alameda Research or Genesis Global Trading. (Genesis shares a parent company with CoinDesk, Digital Currency Group.)

Advertisement
Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Entertainment51 mins ago

Steven Spielberg extends record as only person nominated for Best Director Oscar in 6 different decades

Steven Spielberg has extended a major record on 2023 Oscar nominations morning. After his 2022 nod for directing West Side...

Entertainment1 hour ago

Splash Mountain closed at Disney World. Here’s why and what’s next.

Splash Mountain is officially closed at Walt Disney World. Longtime fans flocked to Magic Kingdom for one last splash over the...

Entertainment1 hour ago

Princess Eugenie Is Pregnant! Royal Announces She’s Expecting Baby No. 2 with Jack Brooksbank

Jack Brooksbank (L) and Princess Eugenie attend the Horan & Rose Show: Modest! Golf co-founder Niall Horan and Justin Rose...

Entertainment11 hours ago

‘AGT: All-Stars’ couple Power Duo confesses crush on live TV: ‘He didn’t know that I loved him first’

Gervin of ‘Pilipinas Got Talent’-winning aerial act Power Duo confesses his crush to his professional partner, Anjanette, on live TV....

Entertainment14 hours ago

Pamela Anderson says she has ‘no ill will’ toward Tim Allen after he denies alleged ‘Home Improvement’ flashing

Pamela Anderson’s book and documentary are available Jan. 31. (Photo: Dia Dipasupil/Getty Images) Tim Allen shot down Pamela Anderson‘s story,...

Entertainment14 hours ago

Razzie Awards face sharp criticism for nominating ‘Firestarter’ child star: ‘Repulsive and wrong’

Ryan Kiera Armstrong in ‘Firestarter’ (Photo: Ken Woroner/Universal Pictures/courtesy Everett Collection) Since their launch in 1981, the Golden Raspberry Awards...

Entertainment15 hours ago

Holly Madison left Hugh Hefner because ‘verbal abuse’ got ‘so bad’: ‘I couldn’t stand it anymore’

Holly Madison, here with Hugh Hefner in 2009, opens up about hosting true crime show The Playboy Murders. (Photo: Getty...

Entertainment16 hours ago

Everything you need to know about Kylie Jenner’s lion head dress

Kylie Jenner, Naomi Campbell and Doja Cat were a few of the celebrities drawing attention to Schiaparelli’s spring 2023 Haute...

Advertisement

Latest Sports

Sports44 mins ago

Patriots hiring Bill O’Brien as new offensive coordinator

The Patriots have their man. New England is hiring Bill O'Brien in an official offensive coordinator role, our Phil Perry...

Sports1 hour ago

NFL playoffs announcers: TV broadcasters, announcing crews for AFC, NFC Championship Games

The NFL playoffs continue this weekend with the NFC Championship Game and the AFC Championship Game. Who is going to...

Sports2 hours ago

What’s next for Matt Patricia and the Patriots?

Will Matt Patricia be given a new role with the Patriots, or will he continue his career elsewhere? Our Phil...

Sports2 hours ago

Azarenka beats ‘fears of failing’ for first Melbourne semi in 10 years

Victoria Azarenka reached her first Australian Open semi-final since winning the title in 2013, then opened up Tuesday about overcoming...

Sports2 hours ago

Karen Khachanov sparks political row at the Australian Open

Russian No3 Karen Khachanov caused a stir with a political statement at the Australian Open – although it was not...

Sports3 hours ago

NHL trade deadline: 20 players who could be on the move

The NHL trade deadline is just over a month away, but talks involving some of the bigger names on the...

Sports3 hours ago

Tiger Tip-Off Preview: Ole Miss

Though there were plenty of positives to take away from the game, Mizzou couldn’t overcome the absence of senior forward...

Sports4 hours ago

‘Their’s was way worse right?’ Pat McAfee believes Cowboys’ last play is worse than Colts’ fake punt

The Dallas Cowboys' last play against the San Francisco 49ers brings back unpleasant memories for the former Indianapolis Colts punter.

Technology Hot News

Technology5 days ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology6 days ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology6 days ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology6 days ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology6 days ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology7 days ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology1 week ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology1 week ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement