White House Responds To Silvergate Collapse, Here's What President Biden Wants Congress To Do

White House press secretary Karine Jean-Pierre on Monday stated that the Biden administration is closely monitoring the situation at Silvergate Bank SI and other cryptocurrency companies.

During a White House press briefing, she did not speak specifically to Silvergate Bank, however, noted that many cryptocurrency companies have recently experienced significant issues, Coindesk reported.

Jean-Pierre pointed out that federal bank regulators have released guidelines on how banks should protect themselves from risks associated with cryptocurrencies and warned of the dangers that digital assets could pose to banks and other financial institutions.

Jean-Pierre also mentioned that President Joe Biden has repeatedly called on Congress to take action to protect everyday Americans from the risks posed by digital assets. She emphasized that the president will continue to do so in the future.

Also read: Is Silvergate's Fall Certain? Industry Experts React To Cryptocurrency Bank's Problems

Silvergate Bank recently announced that it would be shutting down its Silvergate Exchange Network (SEN), a 24/7 internal settlement tool that allowed the bank's customers to conduct transactions with each other on weekends or during times when normal banking services may be closed.

The announcement came shortly after the bank delayed filing its annual report and indicated that it may have to address investigations by bank regulators, the Department of Justice, and other entities.

The bank's stock plummeted as a result, falling by 58% in a single day before stabilizing somewhat.

Some of the bank's prominent crypto clients have announced that they will suspend their business with Silvergate. While Jean-Pierre did not address the specifics of the situation at Silvergate Bank, she stated that the administration will continue to monitor reports on the matter.

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