March 28, 2023

White House Monitoring Troubled Crypto Bank Silvergate

The White House has announced that it is keeping a close eye on the situation at Silvergate, a crypto bank that has been experiencing significant issues. White House Press Secretary Karine Jean-Pierre stated that the administration is “aware of the situation” and will “continue monitoring the reports.”

While declining to comment specifically on the situation at Silvergate, Jean-Pierre noted that the troubled bank is only the latest company in the cryptocurrency field to experience significant issues. She pointed to recently-issued guidelines from U.S. banking regulators on how banks can protect themselves from crypto-related risks.

President Joe Biden has “repeatedly called on Congress to take action to protect everyday Americans from the risk posed by digital assets,” Jean-Pierre said.

In late February, the U.S. Federal Reserve released a statement on the risks posed to banks by exposure to crypto, cosigned by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC). The statement warned that banks should be aware of the risks associated with crypto and take steps to mitigate them.

Silvergate has been facing a number of challenges in recent months, including a significant drop in the value of its shares and concerns about its exposure to crypto-related risks. The bank has been working to address these issues, but it remains to be seen whether it will be able to weather the storm.

The White House’s announcement that it is monitoring the situation at Silvergate is likely to be seen as a sign of the growing importance of crypto in the financial world. As more and more companies and individuals turn to digital assets, regulators and policymakers are grappling with how to ensure that the risks associated with crypto are properly managed.

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