SoFi Stock Crumbles On Crypto Concerns: What's Going On?

SoFi Technologies Inc SOFI shares are trading lower Monday after lawmakers sent a letter to the Federal Reserve urging officials to review SoFi’s crypto trading activities.

What To Know: Sen. Sherrod Brown, Chair of the Senate Committee on Banking, Housing, and Urban Affairs, and several committee members sent letters to the Fed highlighting the risk to consumers when banks trade volatile crypto assets. The committee members also warned that SoFi’s crypto trading may be in violation of regulatory requirements.

"SoFi’s digital asset activities pose significant risks to both individual investors and safety and soundness," the committee members wrote in the letter.

The lawmakers also wrote a letter to SoFi CEO Anthony Noto, noting that SoFi's "continued impermissible digital asset activities" demonstrate a failure to "take seriously its regulatory commitments."

SoFi responded via tweet Monday afternoon. 

"SoFi takes our regulatory and compliance commitments seriously, including our non-bank operations within the digital assets space. We believe we have been fully compliant with the mandates of our bank license and all applicable laws," SoFi said.

The company noted that it looks forward to sharing all requested information with the lawmakers "in a timely fashion."

See Also: What Does SoFi Technologies' Debt Look Like?

SOFI Price Action: SoFi has a 52-week high of $16.47 and a 52-week low of $4.77.

The stock was down 6.47% at $4.85 at time of publication, according to Benzinga Pro.

Photo: Predrag Kezic from Pixabay.