U.S. Lawmakers drafted a bill involving bank executives to be held responsible for their failures.
Legislators’ proposed legislation was drafted in response to the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank. However, the proposal does not specifically mention crypto.
US Lawmakers Target Bank Failures
The Democrats behind the legislation proposed by U.S. Lawmakers aim to address failures at large banks by presenting a series of bills in the United States House Financial Services Committee.
In an announcement on June 21, Maxine Waters stated that she supports 11 bills prepared in response to the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank in the United States. However, the proposed bill has not yet been submitted to committee members’ approval.
RM @RepMaxineWaters announces the introduction of a first wave of Cmte Democratic bills to respond to the recent failures of #SVB, #SignatureBank, & #FirstRepublicBank, which were the 2nd, 3rd, & 4th largest bank failures in U.S. history. | https://t.co/NOSRBnc4Jc pic.twitter.com/Dhsn5ZiCMr
— U.S. House Committee on Financial Services (@FSCDems) June 21, 2023
The proposed bill includes measures such as future disqualification measures and fines in the industry if bank managers “negligently contribute to the failure of their banks.” However, the proposed legislation does not specifically address crypto or Blockchain issues.
Current bills include measures such as authorizing bank managers to ban the sale of stock under certain conditions, expanding banks’ stress-testing requirements, and limiting bank managers’ bonus payments.
Maxine Waters has previously called for cooperation between government agencies and lawmakers on crypto regulations. However, no special emphasis was placed on crypto regulations in the proposed legislation.
