The Financial Services Commission of the US Congress’s House of Representatives has set up hearings for March 29th to investigate the underlying causes behind the bankruptcies of Silicon Valley Bank and Signature Bank.
The Blockchain Association, a pro-crypto lobbying group, has utilized the Freedom of Information Act to request that lawmakers summon reports and information from the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System (FRS) regarding their roles in the SVB and Signature Bank failures.
The Chairman of the Financial Services Commission, Patrick McHenry, has stated that the panel aims to uncover the root causes of the bank failures.
The hearing is expected to have the attendance of FDIC Chairman Martin Gruenberg and Fed Vice Chairman for Oversight Michael Barr.
A previous regulatory statement claimed that the enforcement actions against SVB and Signature were necessary to safeguard the US economy and strengthen public confidence in the banking system.
However, members of the Association allege that the regulators’ actions were premeditated and coordinated. Signature Bank board member Barney Frank has accused US regulators of purposely undermining the crypto industry by shutting down the bank’s operations.