Blockchain Association seeks info from Fed, FDIC, and OCC on 'de-banking' crypto firms

The United States-based crypto advocacy radical Blockchain Association called connected fiscal regulators to supply accusation related to the imaginable “de-banking of crypto firms” successful the aftermath of the failures of banks including Signature, Silicon Valley Bank, and Silvergate.

In a March 16 notice, the Blockchain Association said it had submitted Freedom of Information Act requests to the Federal Deposit Insurance Corporation, the committee of governors of the Federal Reserve System, and the Office of the Comptroller of the Currency for documents and communications that could perchance amusement regulators’ actions “improperly contributed” to the illness of the 3 banks. According to Blockchain Association CEO Kristin Smith, crypto firms “should beryllium treated similar immoderate different law-abiding business” successful the U.S. with entree to slope accounts.

“BA is investigating troubling allegations — including relationship closures and refusal to unfastened caller accounts — which person grown much concerning successful the aftermath of this week’s banking crisis,” said the association. “A situation that agelong word crypto opponents person rushed to blame, incorrectly, connected the technology.”

For galore successful the space, the caller banking situation began with Silvergate’s genitor institution announcing connected March 8 that it would “wind down operations” for the crypto bank. Silicon Valley Bank followed connected March 10 with its ain nonaccomplishment aft a tally connected deposits, and the Treasury, Fed, and FDIC announced the closure of Signature Bank connected March 12.

At the time, a associated connection from the regulators said the enactment against Signature was taken to “protect the U.S. system by strengthening nationalist assurance successful our banking system”. However, erstwhile U.S. Representative and Signature committee subordinate Barney Frank reportedly claimed the FDIC was sending a “strong anti-crypto message” successful shutting down the bank, and immoderate lawmakers are demanding answers.

An FDIC spokesperson told Cointelegraph the bidding process for banks funny successful acquiring Signature and Silicon Valley Bank had begun. They suggested caller reports that the FDIC requested imaginable buyers of the failed banks not enactment immoderate crypto services could person been portion of its “confidential selling process”.

“An acquirer tells the FDIC what assets and liabilities from the failed slope it is consenting to take, arsenic good arsenic what (if any) wealth volition alteration hands,” according to the FDIC’s solution handbook.

Related: US crypto regularisation happening ‘behind closed doors’ — Blockchain Association CEO

Prior to its closure, galore considered Signature to beryllium a large crypto-friendly slope successful the United States, providing services to Coinbase, Paxos Trust, BitGo, and Celsius. Some successful the abstraction person suggested that national regulators’ perceived onslaught connected banks servicing crypto firms could unit companies to crook to “shadier” options.