An Cryptocurrency activity investigation, another student loan delay, had an impact on the shares

SAN FRANCISCO - Feb. 13, 2023 - PRLog -- First, the Biden administration announced that it would prolong the moratorium on student loan payments until June of next year, reducing a significant revenue source for SOFI because it earns money from student loan processing fees.

Secondly, a Senate banking committee sent an opening letter requesting that SOFI's Crypto goods be reviewed.

SOFI stock was down 11.8% for the week as of noon on Friday.

SOFI is one of several "Fintech disruptors" whose stocks have plummeted this year as investors anticipate increasing interest rates and a possible recession. The stock is now down 71% year to date, and this week's news reminds us that being exposed to so many financial services has its drawbacks.

The Senate committee expressed worry that "SOFI's prolonged nonbank digital asset trading activities pose hazards to customers and safety and soundness issues to your institution" in light of the collapse of FTX and other Crypto businesses.

SOFI responded that its Bitcoin business is non-material, with only $3.85 million in cryptocurrency-related fees collected in the most recent quarter. It further stated that it communicates with federal and state regulators on a regular basis.

Separately, SOFI's student loan business has declined dramatically since the pandemic began, owing to multiple student loan moratoriums and President Biden's $10,000 loan relief scheme. The new prolongation of the repayment embargo will postpone a recovery in the student loan refinancing market.

If the firm can sustain its strong new member growth rate, it may emerge stronger from the recession, but investors should brace themselves for additional turbulence.

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