Sherrod Brown, who chairs the US Senate Banking Committee, and three other Democratic members of the committee sent letters on November 21 to various government officials, as well as Anthony Noto, president of SoFi Technology. Noto was also copied in the letters. Brown chairs the committee.

They were concerned about the efforts the online bank was making to meet standards set by the Federal Reserve Board, as well as the non-bank digital asset trading SoFi Digital Assets was doing. Specifically, they were concerned about the trading of non-bank digital assets by SoFi Digital Assets.

Sherrod, along with Senators Jack Reed, Chris Van Hollen, and Tina Smith, mention in their letter to Noto that the Federal Reserve has stated that SoFi is “currently engaged in crypto-asset-related activities that the Board has not deemed permissible.” for a bank holding company (BHC) or financial holding company. This information is included in the letter that Sherrod sends to Noto. This claim is made in relation to the reality that SoFi “is now engaging in actions linked to crypto assets that the Board has not deemed acceptable.”

After SoFi completed its purchase of Gold Pacific Bancorp, a bank holding company, earlier this year, the Federal Reserve recognized SoFi as a suitable candidate for the financial holding position.

However, the company “announced a new service that allows customers of its national bank to invest a portion of each direct deposit in digital assets for free.” Although SoFi was not allowed to expand its illegal activities or conduct cryptocurrency transactions within its national banking subsidiary, the company “announced a new service that allows clients of its national bank to invest a portion of each direct deposit in digital assets of free form”.

In addition to this, “SoFi’s facilitation of customers’ digital asset trading and holding of digital assets on the balance sheet raises questions about the proper calculation of capital requirements.” [Citation needed] [Further citation is required]

In conclusion, the senators have some questions and concerns regarding the digital assets SoFi is making available.

In the investor protection documents it provides, SoFi classified one of the CRYPTOCURRENCIES distributes as “a crypto pump-and-dump” Despite this description, the company did not stop providing the cryptocurrency to its customers.

The authors require a response to the above issues no later than December 8. In addition, the senators once again expressed their concerns in a letter that was sent to Michael Barr, who is the vice president of the Federal Reserve; Martin Gruenberg, who is the acting director of the Federal Deposit Insurance Corporation; and Michael Hsu, who is the acting comptroller of the currency.