{"id":522944,"date":"2023-03-14T10:10:01","date_gmt":"2023-03-14T10:10:01","guid":{"rendered":"https:\/\/uniquehot.com\/?p=522944"},"modified":"2024-06-11T14:34:16","modified_gmt":"2024-06-11T14:34:16","slug":"signature-bank-closure-is-political-says-says-ex-congressman-a-strong-anti-crypto-message","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/signature-bank-closure-is-political-says-says-ex-congressman-a-strong-anti-crypto-message\/","title":{"rendered":"Signature Bank’s Closure Is Political And A Strong Anti-Crypto Message, Ex-Congressman"},"content":{"rendered":"

Barney Frank, the director of Signature bank and a former congressman who helped draft the Dodd-Frank Act, has\u00a0<\/span>stated<\/span><\/a>\u00a0that the lender is solvent and that there was “no real objective reason” for the bank to be closed. He said regulators wanted to send a strong anti-crypto message.<\/span><\/p>\n

The Real Reasons Behind Signature Bank’s Closure?<\/span><\/strong><\/h2>\nThe vague statement issued by the New York Department of Financial Services (NYDFS) on the closure of Signature Bank\u00a0<\/span>claimed<\/span><\/a>\u00a0the move was “in order to protect depositors.”<\/span><\/p>\n
Compared to the detailed order passed by the California Department of Financial Protection and Innovation (DFPI) when they took over Silicon Valley Bank,\u00a0<\/span>citing<\/span><\/a>\u00a0inadequate liquidity and insolvency, the NYDFS statement regarding Signature Bank is vague and lacks any fact-finding order. The DFPI appointed the United States Federal Deposit Insurance Corporation (FDIC) as the receiver of Silicon Valley Bank (SVB).<\/span><\/p>\n
Related Reading: U.S. Doesn\u2019t Want To Get Entangled With The Silicon Valley Bank Collapse: Binance Boss<\/a><\/div>\n
The transfer of SVB’s assets to the FDIC led to a temporary retracement of crypto assets, including Bitcoin. Meanwhile, USDC, the stablecoin issued by Circle, which had $3.3 billion stuck in the tech lender, de-pegged. But as of March 14, the stablecoin is trading at parity with the USD.<\/span><\/p>\n
$\"Bitcoin$
Bitcoin Price On March 14| Source: BTCUSDT On Binance, TradingView<\/a><\/figcaption><\/figure>\n
Industry participants have concluded that Signature Bank was shut down because of its pro-crypto stance and the fact that it was facilitating stablecoin liquidity using its Signet network. The government’s actions may have been prompted by the opportunity over the weekend from SVB’s failure. This is the third major bank with ties to crypto to collapse in less than a month.<\/span><\/p>\n
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Silvergate bank was shut down, then SVB went insolvent. With $110 billion in assets, Signature Bank went under due to a $10 billion bank run, though it had $88 billion deposits filing.<\/span><\/p>\n
https:\/\/twitter.com\/twobitidiot\/status\/60512770<\/p>\n
Senator Elizabeth Warren Blames Trump As SEC Cracks Down On Crypto<\/span><\/h2>\n
Senator Elizabeth Warren has\u00a0<\/span>blamed<\/span><\/a>\u00a0the Trump administration for the closure of Silicon Valley Bank (SVB), which she claims was largely due to the rollback of critical parts of the Dodd-Frank Act in 2018. Warren has called for Congress, banking regulators, and the current administration to reverse these actions as an immediate priority.<\/span><\/p>\n
Related Reading: Silicon Valley Bank Falls \u2013 Will US Interest Rates Drop To 3.75%?<\/a><\/div>\n
The closure of Signature Bank might be a message that the industry is targeted. This comes when Bradley Garlinghouse, the Chief Executive Officer (CEO) of Ripple, a blockchain company, maintains that United States regulations don’t favor innovation, especially in crypto.\u00a0<\/span><\/p>\n
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The headwinds keep growing \u2013 with the SEC declaring war on crypto, Chair Gensler continues to harp that firms simply need to come in and register, but the truth is there\u2019s no infrastructure in place for a \u201cregistered token\u201d to trade nor any clarity as to what these tokens are.<\/p>\n
— Brad Garlinghouse (@bgarlinghouse) March 7, 2023<\/a><\/p><\/blockquote>\n