Lawmakers Debate Responsibility for Recent Bank Failures Amid Crypto Embrace
US Senator Elizabeth Warren has blamed the failure of Signature Bank on its acceptance of crypto customers without sufficient safeguards. Warren has demanded answers from the CEO of Signature Bank regarding the "economically disastrous outcomes" created by the bank's "bad decision-making and excessive risk-taking." The senator alleged that Signature Bank took on "excessive risk" to boost its bottom line by serving crypto clients, such as Coinbase, Paxos, and FTX, and that the bank was wholly unequipped to manage risk independently. The US Department of Justice and the Securities and Exchange Commission were already investigating Signature Bank's work with cryptocurrency clients before regulators took possession of the bank last Sunday.