Amid the instability in the US banking sector, the United States Federal Deposit Insurance Corporation (FDIC) has reportedly now made a decision against the crypto industry. According to a report published on Wednesday evening, potential buyers of the crypto-friendly Signature bank can now submit their bids but with a major condition.
The report said buyers of the Signature banks are to submit their bids by March 17 and would have to give up all crypto businesses at the bank. This has raised controversy among the crypto community on how the US regulators are keen on disrupting the industry.
Another Major Crackdwon For Crypto?
Signature Bank which was one of the few US banks spreading its services across the crypto sector was shuttered by the state regulators on Sunday. Though the regulators claim this move had nothing to do with targeting crypto, the community has continued to stand on the fact that it indeed was a plan to prey on crypto instability.
Related Reading: The “Big Scandal” Behind Pro-Crypto Signature Bank Shutdown By Regulators
Signature Bank had a quarter of its deposits accounted to crypto firms and the bank provided financial services to crypto companies, especially with its real-time payment processor Signet, which firms such as USDC issuer Circle used in processing transactions after business hours.
The bank was recently shut down by US regulators and probed for potentially lax monitoring that may have resulted in money laundering. In February, the regulators filed a class action lawsuit against Signature Bank, alleging that the bank knew about and facilitated the FTX propitiated fraud.
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Author: Samuel Edyme
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