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
Bipartisan, bicameral bill from Sens. Coons, Risch, Smith, Gardner & Reps Luján, Fleischmann, Hultgren, Lipinski supports small business innovation
WASHINGTON – U.S. Senators Chris Coons (D-DE), James Risch (R-ID), Tina Smith (D-MN), and Cory Gardner (R-CO) and U.S. Representatives Ben Ray Luján (D-NM), Chuck Fleischmann (R-TN), Randy Hultgren (R-IL), and Daniel Lipinski (D-IL) today introduced the Promoting Small Business Innovation through Partnerships with National Labs Act, which allows small businesses to gain access to premier facilities at the national labs, spurring innovation and stimulating the culture of private-public collaboration. Small businesses are the lifeblood of the American economy. However, the cost of investing in necessary but expensive capital equipment often prohibits small businesses from pursuing truly innovative ideas and developing
Sen. Tina Smith Says Minnesotans Deserve to Know How Drug Companies Are Using Billions in Tax Breaks
WASHINGTON, D.C. [05/17/18]—Today, U.S. Senator Tina Smith is introducing legislation that would require pharmaceutical companies to share with Minnesotans and people across the country how they’re using the billions of dollars in tax breaks they received as a result of the Republican tax bill. The GOP tax law provided pharmaceutical companies with large windfalls that could have been used to bring down costs for consumers. But earlier this year, news reports showed that some top pharmaceutical companies used a large chunk of their tax cuts to benefit investors and drive up stocks. Sen. Smith’s bill—the Disclosing Pharmaceutical Company Windfall Profits Act—would make
Sen. Tina Smith Pressing for Senate Hearing on Novartis Payments to Trump Lawyer Michael Cohen
WASHINGTON, D.C. [05/17/18]—U.S. Senator Tina Smith (D-Minn.) is calling for a full investigation of the payments Novartis made to President Trump’s personal attorney Michael Cohen and is asking the leaders of the Senate Health Committee to hold a hearing with the CEO of Novartis as the key witness. Sen. Smith expresses concern that the payments may have played a role in shaping the Trump Administration’s positions on issues affecting Novartis and other drug makers, including importation of cheaper drugs from abroad. You can read a copy of the letter Sen. Smith sent by clicking here. “Discovery of these payments comes at
Sen. Tina Smith Condemns Secretary DeVos Dismantling Protections Against Predatory Practices by For-Profit Colleges
WASHINGTON, D.C. [05/25/18]—U.S Senator Tina Smith (D-Minn.) joined 28 of her colleagues in condemning Education Secretary Betsy DeVos’ dismantling of a crucial office designed to protect students against predatory practices by for-profit colleges. Tasked with investigating schools that cheat, mislead, or defraud students, recent media reports have indicated staff and resources of the Department of Education’s Student Aid Enforcement Unit are being systematically reduced by Secretary DeVos. This is occurring while Secretary DeVos has simultaneously hired former executives from for-profit colleges that were previously under investigation by the same unit. “It is critically important that the Department fulfill its mission to protect students in higher
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