{"id":18730,"date":"2023-03-15T02:52:15","date_gmt":"2023-03-15T02:52:15","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/signature-bank-closure-has-nothing-to-do-with-crypto-says-regulator-finance-bitcoin-news\/"},"modified":"2023-03-15T02:52:15","modified_gmt":"2023-03-15T02:52:15","slug":"signature-bank-closure-has-nothing-to-do-with-crypto-says-regulator-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/signature-bank-closure-has-nothing-to-do-with-crypto-says-regulator-finance-bitcoin-news\/","title":{"rendered":"Signature Bank Closure Has Nothing to Do With Crypto, Says Regulator \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The decision to close down Signature Bank had \u201cnothing to do with crypto,\u201d said the New York State Department of Financial Services, the regulator that took possession of the troubled bank on Sunday. The financial watchdog insisted that its decision to put Signature Bank in receivership \u201cwas based on the current status of the bank and its ability to do business in a safe and sound manner.\u201d<\/strong><\/p>\n

\u2018Nothing to Do With Crypto\u2019<\/h2>\n

After the New York State Department of Financial Services (NYDFS) took possession<\/a> of Signature Bank on Sunday, there have been speculations regarding whether the regulatory action was linked to cryptocurrency.<\/p>\n

Former U.S. Representative Barney Frank, who was involved in the drafting of the Dodd-Frank Act and had been a member of Signature Bank\u2019s board since 2015, believes that the regulator\u2019s move was related to cryptocurrency. He told CNBC Monday:<\/p>\n

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I think part of what happened was that regulators wanted to send a very strong anti-crypto message.<\/p>\n<\/blockquote>\n

\u201cWe became the poster boy because there was no insolvency based on the fundamentals,\u201d he opined.<\/p>\n

In September last year, the cryptocurrency sector accounted for nearly 25% of Signature Bank\u2019s total deposits. However, the bank said in December that it plans to reduce crypto-related deposits by $8 billion.<\/p>\n

Responding to claims that the closure of Signature Bank was crypto-related, a spokesperson for the New York State Department of Financial Services told Fortune:<\/p>\n

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The decisions made over the weekend had nothing to do with crypto. The decision to take possession of the bank and hand it over to the FDIC [Federal Deposit Insurance Corporation] was based on the current status of the bank and its ability to do business in a safe and sound manner on Monday.<\/p>\n<\/blockquote>\n

The NYDFS spokesperson further shared that withdrawal requests ballooned over the weekend but Signature Bank failed to provide reliable and consistent data.<\/p>\n

Regarding crypto, the spokesperson stated that the NYDFS \u201chas been facilitating well-regulated crypto activities for several years, and is a national model for regulating the space.\u201d<\/p>\n

Frank expressed surprise at the New York state regulator\u2019s statement that its decision to take possession of Signature Bank was unrelated to cryptocurrency. Claiming that to his knowledge, the bank\u2019s executives were working to provide data to regulators, he insisted:<\/p>\n

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I think that [crypto] was a factor \u2026 I\u2019m puzzled as to why it [Signature Bank] was closed.<\/p>\n<\/blockquote>\n

\u201cWhat we heard from our executives is that the deposit situation had stabilized and they would be getting the capital from the discount window and I continue to be convinced that if we had opened on Monday given the announcements of those two policies, we would have been in a reasonably good shape and certainly functional,\u201d the former congressman claimed.<\/p>\n

Do you think the closure of Signature Bank has something to do with crypto? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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