Latest Releases
Senators Smith, Warren Ask Key Regulators About Banking System’s Exposure to Crypto Risks after FTX Crash
Washington, D.C. – U.S. Senators Tina Smith (D-Minn.) and Elizabeth Warren (D-Mass.), members of the Senate Banking, Housing, and Urban Affairs Committee, sent letters to three key banking regulators raising concerns about the ties between the banking industry and crypto firms following FTX’s bankruptcy. The senators are asking each regulator, the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), how they assess the banking system’s exposure to crypto risks. “(I)t appears that crypto firms may have closer ties to the banking system than previously understood,” wrote the senators. “Banks’ relationships with crypto firms raise questions about the safety and soundness of our banking system and highlight potential loopholes that crypto firms may try to exploit to gain further access.” Earlier this month, FTX, once one of the world’s largest crypto exchanges valued at $32 billion, its sister company Alameda Research, and 130 affiliated companies declared bankruptcy, triggering a crisis in the crypto market – tanking crypto values and dragging other crypto firms down. The senators note that these companies were not deeply integrated into the traditional banking system, sparing millions of people from potential turmoil – though reports show that crypto firms may have closer ties to the banking system than previously known. Alameda, which reportedly funneled $10 billion from the FTX exchange and into its own coffers under a scheme coordinated by Sam Bankman-Fried and other FTX and Alameda executives, made an $11.5 million investment in Washington state-based
Senator Smith’s Bipartisan Legislation to Provide Transparency for Those Looking to Purchase Popular Long-Term Savings Vehicles Passes Senate
WASHINGTON, D.C. – Today, U.S. Senator Tina Smith (D-MN) announced her bipartisan legislation with Senator Thom Tillis (R-NC) to help provide transparency for consumers looking to purchase popular, long-term savings vehicles has passed the Senate. The bill would help ensure that investors considering purchasing Registered Index Linked Annuities (RILAs) get clear and direct information that promotes investor understanding. “It’s more important than ever for consumers to have clear and concise information about their investments,” said Smith. “This legislation would help consumers looking to purchase RILAs by providing clear information about their potential investments in terms that they are able to understand. I hope this legislation will offer a model for how disclosures can and should be designed with consumers in mind. I look forward to working with my colleagues in the House to help get this bill across the finish line and signed into law.” “This commonsense legislation will create a new form for index-linked annuities through the SEC, which will ensure the buyer has all the necessary information when making a decision,” said Tillis. “This legislation is a necessary step for transparency, and I am proud to work on this bipartisan legislation with my colleagues.” The sale of RILAs, which are tax-deferred, long-term investments often used for retirement, have grown rapidly in recent years. However, the lack of a tailored form for registering these products with the Securities and Exchange Commission (SEC) often results in long, dense disclosures that are incomprehensible to the typical purchaser. The Registration for Index-Linked
Sen. Smith “Proud” to be Joining Leadership of Bipartisan Rural Health Caucus
Today, U.S. Senator Tina Smith released the following statement after being named to leadership of the bipartisan Senate Rural Health Caucus: “All families deserve quality health care no matter where they call home,” said Sen. Smith. “But rural communities face unique challenges when it comes to access to health care, which is why I’m proud that I’ll be able to serve as a leader of the Senate Rural Health Caucus. It will give me an additional avenue to help fight to lower the cost of health care, combat the opioid crisis, and address the needs that rural communities face when
Sen. Tina Smith Pushes to Help Minnesotans Cut Costly Student Loan Debt
U.S. Senator Tina Smith has thrown her support behind a proposal to help tens of millions of student loan borrowers in Minnesota and around the country lower their monthly debt burden. The Bank on Students Emergency Loan Refinancing Act would give Americans with student debt the opportunity to refinance their loans at lower interest rates. Right now, people can refinance other types of debt—e.g. home, car, or business loans—but there’s no national program in place to refinance federal student loans. “The price tag on a college degree is a serious source of anxiety for Minnesota students and families, and often, the
Sen. Tina Smith Fights to Ensure 22,000 Retired Minnesota Workers Can Keep Hard-Earned Pensions
After recently meeting with retirees in Duluth whose hard-earned pensions are at risk of being drastically reduced due to chronic underfunding of the Central States Pension Fund, U.S. Senator Tina Smith is backing up her promise to support legislation that would help protect the pensions of retirees across the country, including 22,000 in Minnesota. The Butch Lewis Act—named for a veteran who was the head of his local union in Ohio and who fought to preserve fellow Teamsters’ pensions—would help shore up the Central States Pension Fund and strengthen the multi-employer pension system for all workers by creating a Pension Rehabilitation
Sen. Tina Smith Condemns Unchecked Dark Money in Politics, Calls for Legislation to Reform & Strengthen Campaign Finance Laws
U.S. Senator Tina Smith called on Congress to strengthen our nation’s campaign finance laws by ending the flood of unchecked, unlimited, and secret corporate money into our elections. Since the Supreme Court’s 2010 Citizens United v. FEC decision—which opened the door to unlimited corporate spending in politics—more than $600 million has been spent in federal elections without free and open information about where these millions are coming from. In response to the urgent need for campaign finance changes, Sen. Smith is cosponsoring two legislative reforms. The first would overturn Citizens United once and for all, and the second—the DISCLOSE Act—would require super PACs and other
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