US Treasury Official Sets Record Straight On Bank Failures And Crypto's Role

Zinger Key Points
  • Treasury official Nellie Liang defends digital assets sector amid bank collapses.
  • Uninsured deposits and business risks undermine bank resilience.

Nellie Liang, the U.S. Treasury Department's undersecretary for domestic finance, said that she does not believe the digital assets sector should be blamed for the recent collapses of SVB Financial Group's SIVB Silicon Valley Bank and Signature Bank SBNY.

Long made this statement during a House Financial Services Committee hearing. 

When asked if digital assets were an indirect factor, she noted that Signature Bank was particularly active in the sector.

Also Read: Sam Bankman-Fried Pleads Not Guilty to Bribery And Fraud Charges

Earlier, Federal Deposit Insurance Corp. Chairman Martin Gruenberg told lawmakers about 20% of Signature's deposit base was tied to crypto customers at the end of 2022.

Despite this, the relationship between the crypto industry and the banks has not been a focus of the ongoing hearings examining their failures.

Read Next: Behind Bars, But Still Connected: Bankman-Fried Permitted To Surf These Websites

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Posted In: CryptocurrencyNewsPenny StocksMarketsbank collapsebanksDigital AssetsFederal Deposit Insurance Corp.Federal Reserve Vice Chairman for Supervision Michael BarrNellie LiangSilicon Valley BankUS Treasury Department
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