Signature Bank Targeted by Regulators to Send “Anti-Crypto Message”
Barney Frank, a former Democratic congressman from Massachusetts and current board member of Signature Bank, has raised suspicions that the bank's recent shutdown may have been a targeted move by regulators to send an "anti-crypto message."
On Sunday, the New York State Department of Financial Services shut down Signature Bank after customers withdrew $10 billion worth of deposits on Friday, appointing the Federal Deposit Insurance Corporation (FDIC) to run a “bridge bank” holding all of Signature’s assets.
While the FDIC plans to market the financial institution to potential bidders and has promised to protect all of Signature’s depositors, Frank claims that there was “no real objective reason” for regulators to take over the crypto-friendly bank.
Speaking to CNBC, he pointed out that the bank’s issues were simply a result of contagion from the implosion of Silicon Valley Bank the previous week.
According to Frank, regulators may have chosen to target Signature Bank to send a strong message about their stance on cryptocurrency.
“I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” he said.
“We became the poster boy because there was no insolvency based on the fundamentals.”
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While Frank’s allegations are speculative, they reflect growing concerns within the cryptocurrency community about regulatory crackdowns on digital assets. The industry has long faced criticism and scrutiny from traditional financial institutions and governments, with some countries, such as China, even moving to ban cryptocurrency altogether.
In response to the liquidity pressures and depositors’ needs resulting from Signature Bank’s shutdown, the Federal Reserve and Treasury Department announced over the weekend that they would make up to $25 billion available as loans for financial institutions. It remains to be seen how the situation with Signature Bank will ultimately play out and whether or not Frank’s suspicions about regulators’ motivations will prove to be accurate.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
