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
U.S. Sen. Tina Smith and Bipartisan Group of Senate Colleagues: “Provide Back Pay to Compensate Contractor Employees for Their Lost Wages”
WASHINGTON D.C. [03/08/19]—Today, U.S. Senator Tina Smith continued her fight to secure back pay for federal contract workers who went many weeks without a paycheck during the recent 35-day federal government shutdown by pushing the leaders the Senate Appropriations Committee to include funding for back pay in an upcoming disaster relief package. Unlike federal government employees, who received back pay after they returned to work when the shutdown ended in February, federal contract employees—many of whom serve in modestly-paid jobs—did not receive back pay to make up for the wages they missed. During the shutdown, Sen. Smith led the Senate effort to secure
Approximately 1,000 Minnesotans will be affected by the shuttering of Argosy University’s Eagan Campus
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) and U.S. Representatives Angie Craig (MN-02), Ilhan Omar (MN-05), Collin Peterson (MN-07), and Betty McCollum (MN-04) sent the Department of Education a letter urging Secretary Betsy DeVos to proactively inform Argosy University students about available resources following reports that their 22 campuses are expected to close after the Department’s decision to cut off federal student aid. There are over 1,000 Minnesota students enrolled at Argosy University’s Eagan campus, which is closing its doors today, but the Department has provided students with limited, direct communication about the resources available and their options to
U.S. Senators Klobuchar, Smith Works to Ensure Argosy University Students in Minnesota, Nationwide Receive the Assistance They Deserve
Senate Colleagues Demand Education Department Help Students Explore Options for Continuing Studies at High-Quality Institutions, Properly Distribute Student Loans WASHINGTON, D.C. [03/11/2019]—U.S. Senators Amy Klobuchar (D-Minn.) and Tina Smith (D-Minn.)—along with Sens.Dick Durbin (D-Ill.), Kyrsten Sinema (D-Ariz.), and 10 of their Senate colleagues—called on the Department of Education to take immediate action to assist students in the aftermath of the agency’s February 27 decision to terminate Argosy University’s eligibility for federal Title IV financial aid and reports of Argosy’s imminent closure. The February 27 decision came after revelations that Argosy University had failed to distribute millions of dollars in federal
U.S. Sens. Tina Smith, Jerry Moran Reintroduce Bill to Make Life-saving Oral Cancer Medications More Affordable
Senators’ Reintroduce Legislation to Ensure Oral Cancer Drugs are Covered in Same Way as Traditional IV Chemotherapy WASHINGTON, D.C. [03/12/19]—Today, U.S. Sens. Tina Smith (D-Minn.) and Jerry Moran (R-Kansas) took steps to bring down health care costs for cancer patients by reintroducing their bipartisan bill to make sure oral cancer drugs are covered in the same way as traditional intravenous (IV) chemotherapy. Currently, over 40 states—including both Minnesota and Kansas—and the District of Columbia have passed “oral parity” laws that stop insurers from charging more for prescribed oral cancer medicine than traditional (IV) chemotherapy. Sens. Smith and Moran’s Cancer Drug Parity Act would build
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