Companies willing to acquire the troubled Signature Bank will reportedly have to give up its cryptocurrency business. Those interested in purchasing the financial institution or Silicon Valley Bank (SVB) can submit bids by March 17. 

Both entities, which acted as main lenders for numerous crypto organizations, revealed operational difficulties earlier this week, prompting American regulators to close them down.

The Necessary Condition: Forget About Crypto

According to a recent Reuters coverage, any prospective bidder of Signature Bank must agree to give up all cryptocurrency forays at the organization. 

The American authorities forced the bank to shut its doors a few days ago after it revealed significant liquidity issues. The Federal Reserve maintained that the measures aimed to strengthen public confidence in the local banking system. 

Multiple crypto-related firms used Signature’s services, meaning they experienced considerable troubles. The US-based exchange Coinbase said it held $240 million in corporate cash at the bank, while the blockchain infrastructure platform – Paxos – had a $250 million exposure.

Concerns of a potential banking crisis in the world’s strongest economy arose when the regulators pulled the plug on Silicon Valley