White House press secretary Karine Jean-Pierre said the Biden administration is monitoring Silvergate Bank's (SI)) situation, comparing it with those at other crypto companies and saying President Joe Biden has called on Congress to take action in this area.
During her White House press briefing Monday, Jean-Pierre said she couldn't speak to Silvergate specifically, but noted that a number of crypto companies have "experience[d] significant issues" in recent weeks and pointed to statements from federal bank regulators warning of the risk cryptocurrencies could pose to banks and other financial institutions.
"In recent weeks banking regulators have released guidelines on how banks should protect themselves from risks associated with crypto," she said. "As you know, this is a president that has repeatedly called on Congress to take action to protect everyday Americans from the risk posted by digital assets and he will continue to do so."
Silvergate announced last Friday it would shutter its Silvergate Exchange Network (SEN), a 24/7 internal settlement tool the bank's customers could use to conduct transactions between each other on weekends or times when normal banking services may be closed.
The move came days after Silvergate announced it would delay filing its annual report, and said that it may have bank regulator, Department of Justice and other investigations to address and that its ability to be a "going concern" over the next 12 months may be in doubt.
The bank's stock plummeted as a result, falling 58% in a single day before largely stabilizing. A number of the bank's most prominent crypto clients have announced they would suspend their business with Silvergate,
"[I] won't speak to this particular company as we have not on other cryptocurrency companies, but we're going to continue monitoring reports, and currently we're aware of the situation," Jean-Pierre said Monday.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.