Bitcoin never downgraded.

It is very rare that a news article tells me something that is useful and something that I didn't already know. Coupled with the bit about terms in complex contracts could be triggered -- we could see significant losses in the banking sector over the next few years.

And that would be a problem, because the FDIC does not have enough money to cover widespread failure of banks. The money in many savings/checking accounts could get wiped out. And people would demand that the Federal government bailout the banks to keep people from losing all their money -- despite the fact that bail-ins are required by law in the US.

It will be interesting to see what the Federal government does to keep the banking sector afloat. They have more than a few options:

Of course, any attempt to prop up the banking sector would be bad. What the Federal government should do is allow the banking sector to collapse and accept the hit to Federal tax revenues and perceived legitimacy. The economic recovery would be swift, perhaps 6 months. But that would undo decades of Federal power grabs -- and the crisis will be an opportunity for the Federal government to portray itself as the hero by "saving" Americans.

Fitch is BASED