SoFi was under scrutiny by the Senate months after gaining approval to be considered a bank holding company.
SoFi, the financial firm that runs the digital asset units, has come under pressure from legislators to divest its crypto shares or change its line of business. SoFi was in the spotlight by acquiring Golden Pacific Bancorp and its subsidiary Golden Pacific Bank. Following this acquisition move, the company received approval from the Federal Reserve to appear as a bank conglomerate and a financial holding company.
SoFi Is On The Senate Radar
SoFi, which received approval from the Federal Reserve, had agreed to divest SoFi Digital Assets as part of the deal, or to make it lawful within two years. However, Democratic lawmakers argued that this requirement was not met.
Lawmakers based these claims on SoFi’s joint crypto service with SoFi Digital Assets, using its national bank. The company announced that it will offer free crypto services to customers who deposit money in its bank.
Democrats on the Senate Banking Committee are concerned that SoFi Digital Assets’ business activities may pose consumer risks. As an effect of this situation, it was stated that taxpayers may be in a difficult situation to save SoFi.
According to lawmakers, taxpayers can pay the bill if SoFi’s digital asset branch, the firm’s parent company, or an affiliated national bank is affected by the crypto turmoil. SoFi will be considered a bank holding company, which will allow it to seek help from the Federal Reserve during the liquidity crisis.
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