- NYDFS denied the allegations of the company’s management
- They liquidated the company not because of its crypto business
- And they talk about the inability of the bank to work
Representatives of the New York State Department of Financial Services (NYDFS) gave Reuters comment. They assure that the closure of Signature Bank “has nothing to do” with cryptocurrencies.
The NYDFS regulator said the lender had a “serious crisis of confidence in the bank’s management” and the closure was “based on the bank’s current status and its inability to conduct business in a safe and sound manner.”
Officials gave their comment after Signature Bank board member Barney Frank accused them of bias. He believes that the bank’s closure is due to the fact that the regulator wanted to send a very strong signal against crypto. Frank also said that his institution had no systemic risks. These were temporary liquidity problems due to panic withdrawals.
Difficulties for Signature Bank began following the bankruptcy of two other banks associated with cryptocurrencies. These are American companies Silvergate Capital and Silicon Valley Bank. Over the weekend, the collapse of crypto banks caused the Circle USDC stablecoin to temporarily lose its peg to the dollar. Now the asset has fully restored its course.
Experts believe that the recent banking crisis will be a good “stress test” for both traditional finance and digital assets.
