Signature Bank Closure Has Nothing to Do With Crypto, Says Regulator

2 years ago

Signature Bank Closure Has Nothing to Do With Crypto, Says Regulator

The determination to adjacent down Signature Bank had “nothing to bash with crypto,” said the New York State Department of Financial Services, the regulator that took possession of the troubled slope connected Sunday. The fiscal watchdog insisted that its determination to enactment Signature Bank successful receivership “was based connected the existent presumption of the slope and its quality to bash concern successful a harmless and dependable manner.”

‘Nothing to Do With Crypto’

After the New York State Department of Financial Services (NYDFS) took possession of Signature Bank connected Sunday, determination person been speculations regarding whether the regulatory enactment was linked to cryptocurrency.

Former U.S. Representative Barney Frank, who was progressive successful the drafting of the Dodd-Frank Act and had been a subordinate of Signature Bank’s committee since 2015, believes that the regulator’s determination was related to cryptocurrency. He told CNBC Monday:

I deliberation portion of what happened was that regulators wanted to nonstop a precise beardown anti-crypto message.

“We became the poster lad due to the fact that determination was nary insolvency based connected the fundamentals,” helium opined.

In September past year, the cryptocurrency assemblage accounted for astir 25% of Signature Bank’s full deposits. However, the slope said successful December that it plans to trim crypto-related deposits by $8 billion.

Responding to claims that the closure of Signature Bank was crypto-related, a spokesperson for the New York State Department of Financial Services told Fortune:

The decisions made implicit the play had thing to bash with crypto. The determination to instrumentality possession of the slope and manus it implicit to the FDIC [Federal Deposit Insurance Corporation] was based connected the existent presumption of the slope and its quality to bash concern successful a harmless and dependable mode connected Monday.

The NYDFS spokesperson further shared that withdrawal requests ballooned implicit the play but Signature Bank failed to supply reliable and accordant data.

Regarding crypto, the spokesperson stated that the NYDFS “has been facilitating well-regulated crypto activities for respective years, and is simply a nationalist exemplary for regulating the space.”

Frank expressed astonishment astatine the New York authorities regulator’s connection that its determination to instrumentality possession of Signature Bank was unrelated to cryptocurrency. Claiming that to his knowledge, the bank’s executives were moving to supply information to regulators, helium insisted:

I deliberation that [crypto] was a origin … I’m puzzled arsenic to wherefore it [Signature Bank] was closed.

“What we heard from our executives is that the deposit concern had stabilized and they would beryllium getting the superior from the discount model and I proceed to beryllium convinced that if we had opened connected Monday fixed the announcements of those 2 policies, we would person been successful a reasonably bully signifier and surely functional,” the erstwhile congressman claimed.

Do you deliberation the closure of Signature Bank has thing to bash with crypto? Let america cognize successful the comments conception below.

Kevin Helms

A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.

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