In a recent development, US lawmakers from the House Financial Services Committee have introduced a series of bills aimed at addressing major banks’ failures. These bills come in response to the collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank in the United States. The proposed legislation includes measures that would impose fines and ban bank executives from future work in the industry should they “negligently contribute to their bank’s failure.”
The House Committee, led by Republican Patrick McHenry, frequently discusses matters related to digital assets. While some lawmakers have attributed the failures of Signature and Silicon Valley Bank to digital assets, the proposed legislation does not specifically mention crypto or blockchain. Furthermore, the crypto-friendly Silvergate Bank — which announced its voluntary liquidation in March — was not mentioned when introducing the bills.
Proposals in the bills could grant regulators the authority to prevent bank executives from selling stock in specific situations, like with Silicon Valley Bank, as well as expanding banks’ stress testing requirements. One bill even suggests putting a limit on bonus payments to bank executives.
Although it is unclear which bills have the potential for bipartisan support, the lawmakers in the committee did express openness to some of the legislation. This development comes at a time when the crypto industry is experiencing rapid growth, and regulations surrounding the industry remain a critical topic of discussion.
Although the proposed bills do not specifically address cryptocurrencies, lawmakers have acknowledged that coordination and cooperation are required between government agencies to address crypto regulation. In the past, lawmakers like Rep. Maxine Waters have also expressed optimism that stablecoin bills could pass the committee.
The future of regulations surrounding banks and their potential impact on the cryptocurrency and blockchain industries remain uncertain. With several lawmakers open to discussing new legislation, we may see a significant shift in the way the banking sector is regulated. However, it is crucial to remain informed and vigilant about these developments, as they may have a long-lasting impact on the crypto industry as a whole.
Source: Cointelegraph
