After Silvergate Bank announced its voluntary liquidation, US Senator Elizabeth Warren attributed the downfall of the financial institution to “crypto risk.” According to Warren, she had previously warned about Silvergate. However, some critics have dismissed Warren’s opinions as “terribly misinformed” and claim that she is “casting a terrible blame.”
After Elizabeth Warren blames so-called “Crypto Risk,” Crypto supporters offer a different view of Silvergate Bank’s downfall
.
Hours after Silvergate Bank announced its liquidation, U.S. Senator Elizabeth Warren (D-MA)tweetedabout the financial institution’s collapse. Warren again referred to cryptocurrencies as dangerous and expressed disappointment about the failure of Silvergate.” He judged that it was “predictable.
On March 9, U.S. Senator Elizabeth Warren tweeted, “I warned of Silvergate’s dangerous, if not illegal, activities and noted its serious due diligence failures. And I have identified serious due diligence failures.” Now Customers Must Be Bailed Out&Regulators Should Toughen Up Against Crypto Risks. The Massachusetts senator’s statement was met with criticism immediately after it was released. One individual respondedto Warren’s tweet,“You caused a bank run with false accusations and now you claim to have predicted it – that’s Olympic level mental gymnastics.”
The individual’s comment that Warren initiated the Silvergate banking deal stems from a letter written by Senator Warren along with Senators Roger Marshall (R-KS) and John Kennedy (R-LA). The bipartisan letterincluded numerous accusationsfor demanding information about a “massive crypto scandal.” In response to Warren’s tweet on Thursday, one personaskedwhether politicians have ever been able to “throw around terrible accusations and not badly misrepresent them.”
Some have criticized Warren for adopting the age-old propaganda approach of blaming things, rather than individuals or companies, for failures. This approach is akin to an inanimate weapon doing violence on its own, a pencil autonomously writing hateful letters, or a cryptocurrency harming investors rather than crypto-business operators.On Twitter,many critics disagreedwith Senator Warren’s views on this matter, {37 There wereIn response to her assertion, crypto CFARam Ahluwaliaoffers a different perspective on the Silvergate situation.
“Silvergate, the first crypto bank, faced a bank run that led to its demise.” Ahluwalia wrote. “It was not these issues that ultimately led to [Silvergate Bank’s] demise, even in the face of allegations surrounding AML. The executive branch is responsible for bank oversight, but this process has been shortened. One senator’s letter, amplified by social media, undermined public confidence in Silvergate and ultimately led to a crisis of confidence.”
Checking Warren’s Twitter thread, there appears to be little support for her comments in the post, even though the tweet has received 942 likes and has been viewed over 724,000 times. Most of the responses to Warren’s tweetexpress dislikefor her comments on the matter. As usual, criticism of the politician’s actions is likened to a politician breaking a leg to sell crutches.
“This is why I hate political self-exaltation at the expense of others,” onesaid toWarren “Crypto (and) blockchain solves a lot of problems. Unfortunately, it doesn’t solve posturing, self-interest, and fear-mongering by elected officials. Thank you for making it harder for honest, hardworking people.”
What are your thoughts on Senator Warren’s views on cryptocurrencies and her role in the collapse of Silvergate Bank? Do you think her accusations are justified or do you think they are misguided and harmful to financial institutions? Please share your thoughts in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons.
