Signature Bank resolved the outflow of deposits by the time the New York state regulator decided to close the financial institution. This was stated by former member of the US House of Representatives Barney Frank, reports The Block.
“Panic in the crypto market caused a withdrawal of funds. By Sunday, we stabilized the situation … But I think that regulators, especially in New York, wanted to make it clear that the crypt is toxic, ”the politician believes.
Representative NYDFS at the briefing, she directly pointed out the absence of claims against the company’s business related to the crypto industry.
“Signature Bank had a wide depositor base, so the idea that it was a crypto bank is incorrect,” Superintendent Adrienne Harris said.
Over the past weekend, US authorities began reorganizing two digital asset industry-friendly banks – SVB and Signature Bank.
According to Frank, the latter would have coped with the problems on his own. According to the NYDFS, the bank’s assets were $110.36 billion with deposits of $88.59 billion.
“They shut us down for no good reason to show that banks should not deal with cryptocurrencies. We just became an example, ”the politician said.
The ex-congressman is on the board of directors of Signature Bank.
According to him, the bank has been negotiating with regulators since Friday. The institution’s clients included a number of large crypto firms such as Circle, Coinbase and Coinshares.
The politician representing the Republican Party considers it necessary to introduce clear rules for cryptocurrencies in the United States.
“Banks should be strictly regulated regarding, for example, that a client has a cryptocurrency that is 100% backed by dollars. This must be confirmed, ”Frank said.
He pointed out that the authorities are in a hurry to sell Signature Bank. In his opinion, the size of the discount will indicate the presence and depth of possible problems with the financial institution. However, the former congressman considers the bank’s attention to the digital asset industry to be the root cause of the regulator’s claims.
Recall that Elon Musk announced his readiness to acquire SVB.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Signature Bank resolved the outflow of deposits by the time the New York state regulator decided to close the financial institution. This was stated by former member of the US House of Representatives Barney Frank, reports The Block.
“Panic in the crypto market caused a withdrawal of funds. By Sunday, we stabilized the situation … But I think that regulators, especially in New York, wanted to make it clear that the crypt is toxic, ”the politician believes.
Representative NYDFS at the briefing, she directly pointed out the absence of claims against the company’s business related to the crypto industry.
“Signature Bank had a wide depositor base, so the idea that it was a crypto bank is incorrect,” Superintendent Adrienne Harris said.
Over the past weekend, US authorities began reorganizing two digital asset industry-friendly banks – SVB and Signature Bank.
According to Frank, the latter would have coped with the problems on his own. According to the NYDFS, the bank’s assets were $110.36 billion with deposits of $88.59 billion.
“They shut us down for no good reason to show that banks should not deal with cryptocurrencies. We just became an example, ”the politician said.
The ex-congressman is on the board of directors of Signature Bank.
According to him, the bank has been negotiating with regulators since Friday. The institution’s clients included a number of large crypto firms such as Circle, Coinbase and Coinshares.
The politician representing the Republican Party considers it necessary to introduce clear rules for cryptocurrencies in the United States.
“Banks should be strictly regulated regarding, for example, that a client has a cryptocurrency that is 100% backed by dollars. This must be confirmed, ”Frank said.
He pointed out that the authorities are in a hurry to sell Signature Bank. In his opinion, the size of the discount will indicate the presence and depth of possible problems with the financial institution. However, the former congressman considers the bank’s attention to the digital asset industry to be the root cause of the regulator’s claims.
Recall that Elon Musk announced his readiness to acquire SVB.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
