Federal Reserve Chair Jerome Powell testifies before the Senate Banking, Housing, and Urban Affairs Committee on the Semiannual Monetary Policy Report to Congress Reuters U.S. Senators Elizabeth Warren and Tina Smith are asking for an accounting from the Federal ReserveFederal Reserve and other U.S. financial regulators of banks' activity and ties to the industry after the collapse of FTX.
While the banking system has remained relatively unaffected by the latest crypto crash, FTX s collapse shows that it may be more integrated into the banking system than the regulators are aware of, the lawmakers wrote to the chiefs of the Fed, the Federal Deposit Insurance Corporation FDIC and the Office of the Comptroller of the Currency in letters dated Wednesday and released by Warren's office on Thursday.
The senators, both Democrats on the Senate Banking CommitteeSenate Banking Committee, wrote that they wanted to express concern and to inquire about how your agency assesses the risks to banks and the banking system associated with those relationships.
The letters asked for details on oversight of banks' trading and loans to crypto firms, and asked if regulators plan to conduct a review of firms' relationships with banks. They gave regulators two weeks to respond to their requests.
After the collapse of Bahamas-based FTX, lawmakers launched an investigation into the industry, after the disappearance of at least $1 billion of customer funds.