{"id":513700,"date":"2022-11-22T01:30:00","date_gmt":"2022-11-21T22:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/senate-banking-committee-democrats-warn-sofi-about-meeting-its-compliance-deadline\/"},"modified":"2022-11-22T01:30:00","modified_gmt":"2022-11-21T22:30:00","slug":"senate-banking-committee-democrats-warn-sofi-about-meeting-its-compliance-deadline","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/senate-banking-committee-democrats-warn-sofi-about-meeting-its-compliance-deadline\/","title":{"rendered":"# Senate Banking Committee Democrats warn SoFi about meeting its compliance deadline"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d1fd31e46f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d1fd31e46f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/senate-banking-committee-democrats-warn-sofi-about-meeting-its-compliance-deadline\/#%E2%80%9D_Senate_Banking_Committee_Democrats_warn_SoFi_about_meeting_its_compliance_deadline_%E2%80%9C\" >&#8221; Senate Banking Committee Democrats warn SoFi about meeting its compliance deadline &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Senate_Banking_Committee_Democrats_warn_SoFi_about_meeting_its_compliance_deadline_%E2%80%9C\"><\/span>&#8221; Senate Banking Committee Democrats warn SoFi about meeting its compliance deadline &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvMjRjMjE3NTYtMThjOC00OTc1LThjZjQtOThiOTRiMDhjN2FjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5129e2ea>Chairman of the United States Senate Banking Committee Sherrod Brown and three other Democratic committee members <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/letter_to_sofi_company1.pdf\">sent<\/a> letters Nov. 21 to federal officials and to Anthony Noto, president of SoFi <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a>. They expressed concern about the online bank\u2019s efforts to conform to Federal Reserve Board requirements and nonbank digital asset trading activities conducted through SoFi Digital Assets.<\/p>\n<p>In the letter to Noto, Sherrod, along with Sens. Jack Reed, Chris Van Hollen and Tina Smith, notes that the Federal Reserve had said that SoFi \u201cis currently engaged in crypto-asset related activities that the Board has not found to be permissible\u201d for a bank holding company (BHC)  or financial holding company (FHC).  The Federal Reserve granted SoFi the status of financial holding company after its purchase of bank holding company Gold Pacific Bancorp at the beginning of the year. <\/p>\n<p>Although the Fed gave SoFi two years to legalize or divest SoFi Digital Assets, the senators wrote: <\/p>\n<blockquote><p>\u201cWe are concerned that SoFi\u2019s continued impermissible digital asset activities demonstrate a failure to take seriously its regulatory commitments and to adhere to its obligations.\u201d <\/p><\/blockquote>\n<p>SoFi was prohibited from expanding its impermissible activities or conducting crypto transactions in its national bank subsidiary, but it \u201cannounced a new service allowing customers of its national bank to invest part of every direct deposit into digital assets with no fees.\u201d In addition, \u201cSoFi\u2019s facilitation of customer digital asset trading and holding digital assets on-balance sheet raises questions about the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate calculation of capital requirements. They warn: <\/p>\n<blockquote><p>\u201cTaxpayers could be on the hook if crypto-related exposures at SoFi Digital Assets ultimately require its parent BHC or affiliated national bank to seek emergency liquidity or other financial assistance from the Federal Reserve or FDIC [Federal Deposit Insurance Corporation].\u201d <\/p><\/blockquote>\n<p>Finally, the senators question SoFi\u2019s choice of digital assets on offer. SoFi identified one of the coins it offers as \u201ca crypto pump-and-dump\u201d in investor protection materials, but did not stop offering it. The authors demand a response to this issues they raised by Dec. 8. <\/p>\n<p><strong><em>Related:\u00a0<\/em><\/strong><strong><em>Fed adds a new layer of bureaucracy for US banks engaging in crypto asset activities<\/em><\/strong><\/p>\n<p>The senators also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/letter_to_fed_fdic_occ_on_sofi1.pdf\">sent<\/a> a letter to Fed vice chair Michael Barr, Federal Deposit Insurance Corporation acting chair Martin Gruenberg and acting comptroller of the currency Michael Hsu repeating their concerns. \u201cIt is imperative the Fed, FDIC, and OCC [Office of the Comptroller of the Currency] ensure that SoFi complies with all consumer financial protection and banking regulations,\u201d they wrote. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/senate-banking-committee-democrats-warn-sofi-about-meeting-its-compliance-deadline\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Senate Banking Committee Democrats warn SoFi about meeting its compliance deadline &#8220; Chairman of the United States Senate Banking Committee Sherrod Brown and three other Democratic committee members sent letters Nov. 21 to federal officials and to Anthony Noto, president of SoFi Technology. They expressed concern about the online bank\u2019s efforts to conform to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":513701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvMjRjMjE3NTYtMThjOC00OTc1LThjZjQtOThiOTRiMDhjN2FjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74888,70934],"class_list":["post-513700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-banking","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=513700"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/513701"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=513700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=513700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=513700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}