Investing.com – Speaking Monday evening during a press briefing, White House spokeswoman Karine Jean-Pierre said the Biden administration is monitoring the situation of Silvergate Capital Corp (NYSE:), the crypto bank threatened with bankruptcy since last week.
Recall that the action of Silvergate collapsed by nearly 60% last Thursday after postponing the delivery of a report to the SEC. The title fell more than 6% on Monday.
During her White House press briefing on Monday, Ms. Jean-Pierre said she could not speak specifically to Silvergate, but noted that a number of cryptocurrency companies have “experienced significant issues.” these last weeks.
She also highlighted the warning from federal banking regulators of the risk that cryptocurrencies could pose to banks and other financial institutions.
“In recent weeks, banking regulators have issued guidance on how banks should protect themselves against cryptocurrency risk,” she said.
“As you know, it was the President who repeatedly called on Congress to take action to protect everyday Americans from the risk displayed by digital assets and he will continue to do so.”
Silvergate announced last Friday that it will shut down its Silvergate Exchange Network (SEN), an internal settlement tool available during 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 it could be investigated by the banking regulator, the Justice Department and others.
Silvergate has also warned that its ability to be a “going concern” for the next 12 months could be in doubt.
“[Je] I won’t be discussing this particular company as we haven’t for other cryptocurrency companies, but we will continue to monitor reports, and currently we are aware of the situation,” Jean-Marc said. Peter Monday.