Re: Signature Bank’s Crypto Execution - did regulators target these banks due to crypto
Did the Wall St Journal Editorial board have a bias?
Point in both articles is factual, these three banks were the primary exchange banks for crypto in the U.S. to move large sums of crypto to U.S. dollars and vice versa. Signature Bank claims they were solvent but shut down by the Fed regardless.
Another view on what was happening in February...
The Securities and Exchange Commission. The Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation. The National Council of Economic Advisors. The U.S. Justice Department.
This year, an alphabet soup of U.S. agencies have scrutinized the crypto industry like never before. They are wielding indictments, lawsuits, investigations, and penalties to rein in the largely unregulated market. No surprise, crypto folk are none too pleased with the development.
The Feds’ actions have been called a war, an attack, and a bid to kill blockchain technology in its adolescence.
“The breadth of this plan — spanning virtually every financial regulator — as well as its highly coordinated nature, has even the most steely-eyed crypto veterans nervous that crypto businesses might end up completely unbanked, stablecoins may be stranded and unable to manage flows in and out of crypto, and exchanges might be shut off from the banking system entirely,” ...
One of the first signs a new, coordinated effort was underway came in January. In a little noticed move, the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency released a joint statement concerning “crypto-asset risks to banking organizations.”
“It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system,” the joint statement reads.
The statement goes on to say that banks are “neither prohibited nor discouraged from providing banking services to customers of any specific class or type.” Yet Carter argues it is “a strong deterrent to any bank considering aligning itself with crypto.”
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|488768||Re: Signature Bank’s Crypto Execution - did regulators target these banks due to crypto||Naamkat||2||3/19/2023 12:02:58 AM|