Lawmakers propose bills to hold bank executives accountable and address risks.

The United States House Financial Services Committee Democrats have introduced 11 bills in response to the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank, which are described as the “first wave” of legislation aimed at addressing failures at major banks. The proposed legislation includes measures to impose fines and ban bank executives from future work in the industry should they “negligently contribute to their bank’s failure.” Committee ranking member Maxine Waters stated that it is past time for legislation aimed at strengthening the safety and soundness of the banking system and enhancing bank executive accountability. The House Committee, chaired by Republican Patrick McHenry, often discusses matters concerning digital assets, including the oversight of federal regulatory agencies like the Securities and Exchange Commission. However, Representative Waters did not specifically mention crypto or blockchain in the proposed legislation, though some lawmakers have pointed to digital assets as contributing to the failures of Signature and Silicon Valley Bank. The proposed bills also include measures to restrict bonus payments to bank executives and give regulators the authority to prohibit bank executives from selling stock under certain circumstances. It remains unclear which bills have any hope of getting through with bipartisan support.

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