BTC-Newswire

The “Big Scandal” Behind Pro-Crypto Signature Bank Shutdown By Regulators

Press Releases Crypto News Bitcoinist The “Big Scandal” Behind Pro-Crypto Signature Bank Shutdown By Regulators

Signature Bank, another major crypto-friendly institution, was shut down by regulators on Sunday. The New York financial institution, with a large lending business in the crypto industry, was caught in the “crossfire” of regulators to prevent the spreading banking crisis.

Yesterday, the U.S. Federal Reserve (Fed) stated that keeping the bank open could “threaten the stability of the entire financial system.” Similar to what was done to ensure depositors at the failed Silicon Valley Bank (SVB), regulators stated that the crypto-friendly Signature Bank would have full access to their deposits. The Fed said:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After the sudden collapse of Silicon Valley Bank and the third largest bank failure in U.S. history, former Congressman and current director and board member of Signature Bank, Barney Frank, sees the recent moves by regulators against pro-crypto bank Signature as an “anti-crypto message.”

Regulators Shutdown Signature To Attack Pro-Crypto Allies?

According to a CNBC report, the sudden move by U.S. regulators “shocked” executives at Signature Bank. For bank director Barney Frank, the executive had “no indication of problems” until the deposit run they received on Friday, following the fall of Silicon Valley Bank, to what the former congressman claimed was “pure contagion” from the SVB fall.

Frank co-sponsored the landmark Dodd-Frank Act created to curb the financial sector’s risky activities post-2008. On the current situation, the former gove

Go to Source to See Full Article
Author: Ronaldo Marquez

Did you like this?
Tip BTC Newswire with Cryptocurrency