Banking crisis in the United States: Senator Elizabeth Warren defends cryptos!

The banking crisis continues to plague the United States after the collapse of major banks like the Signature Bank. Since the start of this crisis, several banking executives have accused cryptos of being the source of the problem. Scott Shay, former executive of Signature Bank, is one of them. He demonstrated this recently in a statement regarding what led to the failure of his bank. Also, US Senator Cynthia Lummis recently gave her take on Shay’s accusations. It was during a hearing of the Senate Banking Committee on May 16.

Cynthia Lummis hits out at Scott Shay for criticizing crypto

While cryptos are seen as an escape from the US banking crisis, Shay blames them for causing it. But, Senator Cynthia Lummis believes the former leader is wrong to blame the bank crash on cryptos. She also criticizes Scott Shay for having pocketed millions in bonuses and stock options with the crisis. She said Silicon Valley Bank CEO Gregory Pecker did the same.

According to Cynthia Lummis, the two bank officials have “kept millions after irresponsibly sinking banks“. “Becker and Shay […] can pay themselves tens of millions of dollars in bonuses and stock options, and when the banks fail, they keep all the money. And that’s just unacceptable», highlighted the US senator.

Cynthia Lummis added that it was necessary to act quickly against this type of behavior at the risk of seeing the same mistakes repeated. She explained: “If we don’t fix this, all the CEOs of these multi-billion dollar banks will continue to take risks and blow up the banks, and everyone will have to pay the price.“.

In April, the superintendent of the New York Department of Financial Services (NYDFS) spoke about the causes of the banking crisis. She stated that he is “ridiculousto blame cryptos for the closure of Signature Bank. She explained that the problem stems more from a “fashionable bank rush“. It should be noted that the NYDFS took control of Signature Bank on March 12. He had then advanced as a reason the need to protect the American economy from the “systemic risk“.