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US Senators Jack Reed (D-R.I.), Sherrod Brown (D-Ohio), Chris Van Holland (D-Md. ), and Tina Smith (D-Minn.) addressed open letters to digital finance startup SoFi. Several financial regulators requested an examination of SoFi's cryptocurrency offers.
SoFi to Grow Crypto Market
Concerns raised in the statement were regarding the company's plans to grow into the cryptocurrency market. The other concerns were how it handles client cryptocurrency, and its inclusion of the push-and-drop coin dogecoin (DOGE), mentioned in a medium post on the company website. Legislators questioned the digital finance company about how it advertises cryptocurrencies for trade, handles consumer complaints, and chooses the proper credit, market, and risk assessment capitalization for digital asset holdings.
Expansion of Digital Asset Retail Business
According to a second letter sent to the Federal Reserve Vice Chair for Supervision, Acting Comptroller of the Currency, and Acting Federal Deposit Insurance Corporation Chair, SoFi agreed not to increase illegal activities. Still, the business has extended its digital asset retail businesses. According to a statement from the digital finance company representative, the firm permits its users to purchase and trade cryptocurrencies. However, it does not offer any other kind of financing for cryptocurrencies.