Barney Frank Points Cryptocurrency As Responsible For The Bank Crisis In The USA!

The biggest stablecoinThe bankruptcy of Silicon Valley Bank, which caused USDC to experience a depeg at the weekend, remains hot on the agenda.

This bankruptcy and USDC American politician and former congressman as comments continue to come in. Barney Franktalked about cryptocurrencies.

Speaking to Bloomberg, Frank said that cryptocurrencies are leading cryptocurrencies. Bitcoin (BTC) He said that when it first appeared in 2008, it was an asset that regulators and officials did not take into account.

Known as the Dodd-Frank Act, the Dodd-Farnk Wall Street Reform and Consumer Protection Act, which averted the global financial crisis and was introduced to mitigate excessive risks, Barney Frank attributed the failures of banking giants to crypto.

Arguing that cryptocurrencies are a potentially destabilizing element for the financial system, Frank said in his statement:

“With Bitcoin, cryptocurrencies became the new element that entered our system.

However, a new and potentially destabilizing element has been added to our financial system.

And what we get from crypto where we are today is three failures.”

Stating that the collapse of the three big banks one after the other is not equivalent to the bank crisis in 2008, Frank stated that even though the crypto sector harms the banking sector, it cannot destroy the banking sector.

“The negative consequences of this have been unfortunate for some people, but not systematically problematic.”