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. Tina Smith’s Priorities to Improve Career and Technical Training Become Law
WASHINGTON, D.C [07/31/18]—U.S. Senator Tina Smith’s (D-Minn.) priorities to expand workforce development were signed into law by the President today. After passing in both houses of Congress, several measures championed by Sen. Smith—aimed at helping Minnesotans and Americans get the training they need to land careers in high-demand fields—became law as part of bipartisan education legislation. “Not everyone wants to or has to go to a four-year college, but everyone should be able to get the skills necessary to lead their own lives and create opportunity for themselves and their families,” said Sen. Smith, a member of the Senate Education Committee. “My
Sen. Tina Smith’s Bill Would Help Students Access Mental Health Services in Schools
WASHINGTON, D.C. [08/02/18]—U.S Senator Tina Smith (D-Minn.) is pressing for new legislation to make sure students in schools across the nation are able to access the mental health services they need, where they are. Young people experience mental health conditions about as often as adults—about 1 in 5 struggle with severe mental health problems—but they often have a hard time getting services. Schools are an ideal setting to identify students who need mental health services and quickly connect them with help. Sen. Smith’s bill—the Mental Health Services for Students Act—would help schools partner with local mental health providers to establish on-site, mental
U.S. Sen. Tina Smith Announces Comprehensive Bill To Address Skyrocketing Prescription Drug Prices
DULUTH, MN [08/08/18]—U.S. Sen. Tina Smith (D-Minn.) said today that for far too long the health and financial well-being of families in Minnesota and across the country has been harmed by the skyrocketing price of prescription drugs, and she announced plans to introduce legislation designed to hold large pharmaceutical companies accountable for high prices and bring down costs for both consumers and taxpayers. Sen. Smith, a member of the Senate Health Committee, made her announcement at a “Health Care Cost” listening session in Duluth, where she met with local care providers and health experts as well as residents from across
Sen. Tina Smith Urges Trump Administration to Take Immediate Steps to Reunite Children and Families
WASHINGTON D.C. [08/15/18]— U.S. Sen. Tina Smith (D-Minn.) called on the Trump Administration to immediately take action to reunite the over 500 immigrant children still separated from their families. Sen. Tina Smith—along with 16 of her Senate colleagues—stressed to Department of Homeland Security (DHS) Secretary Kirstjen Nielsen how each passing day that DHS fails to reunite separated children with their parents unacceptably traumatizes these children and their families, including causing psychological and physical developmental harms to children. “We call on DHS to take immediate action to locate every deported parent abroad whose separated child remains in government custody,” wrote Sen. Smith
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