Senator Richard Blumenthal Links SVB Collapse to Crypto Risks as Senate Weighs New Rules

As the Senate Banking Committee moves toward marking up new crypto market structure legislation this week, Senator Richard Blumenthal is warning that the 2023 collapse of Silicon Valley Bank foreshadowed how crypto-related volatility can stress traditional lenders. He highlights findings from a 292-page investigation and points to stablecoins and banks like Signature and Silvergate as evidence that fast-moving digital deposits and opaque exposures could magnify future losses without stronger safeguards.