{"id":19569,"date":"2023-04-07T00:39:26","date_gmt":"2023-04-07T00:39:26","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/new-york-regulator-calls-crypto-theories-associated-with-signature-bank-closure-ludicrous-regulation-bitcoin-news\/"},"modified":"2023-04-07T00:39:26","modified_gmt":"2023-04-07T00:39:26","slug":"new-york-regulator-calls-crypto-theories-associated-with-signature-bank-closure-ludicrous-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/new-york-regulator-calls-crypto-theories-associated-with-signature-bank-closure-ludicrous-regulation-bitcoin-news\/","title":{"rendered":"New York Regulator Calls Crypto Theories Associated With Signature Bank Closure ‘Ludicrous’ \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Adrienne A. Harris, the superintendent of New York\u2019s Department of Financial Services, has branded as \u201cludicrous\u201d the claims that the closure of Signature Bank was related to its crypto business. Harris insisted that the bank\u2019s \u201chigh percentage of uninsured deposits\u201d and insufficient liquidity were some of the reasons why it was closed. <\/strong><\/p>\n

Signature Bank\u2019s Liquidity Challenges<\/h2>\n

Head of the New York State\u2019s Department of Financial Services (DFS), Adrienne A. Harris, recently reiterated the regulator\u2019s stance that the closure of Signature Bank had nothing to do with its crypto banking business. According to Harris, a superintendent with the regulatory body, the decision to close the bank was taken not only because the bank had \u201ca high percentage of uninsured deposits\u201d but it also lacked the liquidity to meet withdrawal requests.<\/p>\n

Speaking at a recent event organized by the blockchain analysis firm, Chainalysis, Harris also dismissed assertions that her department\u2019s closure of the Signature Bank may be part of an elaborate scheme that is aimed at strangling the crypto industry.<\/p>\n

\u201cThe idea that the taking possession of Signature was about crypto and this is \u2018Choke Point 2.0\u2019 is really ludicrous,\u201d Harris said.<\/p>\n

As previously reported<\/a> by Bitcoin.com News, after DFS announced its decision to shut down Signature Bank, board member and former U.S. lawmaker, Barney Frank, suggested that the DFS decision was motivated by its perceived negative predisposition towards crypto. Frank, who co-sponsored the 2010 Dodd-Frank Act<\/a>, insisted there was no \u201cinsolvency based on the fundamentals.\u201d<\/p>\n

Although Frank\u2019s claims were immediately rejected<\/a> by the DFS, rumours suggesting the regulator\u2019s action against Signature Bank is part of a coordinated attack on the crypto industry have swelled. To support claims the DFS may be out to kill the crypto industry, critics of the regulator\u2019s decision to place Signature Bank under receivership point to the financial institution\u2019s status as the go-to bank for crypto companies.<\/p>\n\n

Crypto Industry\u2019s Immature Compliance Programs<\/h2>\n

However, in her latest salvo against critics, Harris claimed the crypto industry\u2019s compliance programs still lack maturity. She explained:<\/p>\n

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There is still a lack of maturity around Bank Secrecy Act-anti-money-laundering [compliance] and cybersecurity. We\u2019re eager for the day when those systems mature and scale as the business side does.<\/p>\n<\/blockquote>\n

Meanwhile, a report in the Wall Street Journal said the DFS is about to finalize regulations that give it authority to assess the crypto industry. This according to the report will enable the DFS to sync its regulation of the crypto industry with how it assesses the insurance and banking sectors. Concerning the fees paid by companies for their examinations, the report quotes Harris revealing that such revenues will be added to DFS\u2019 resources.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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

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