ccording to a recent report, the Federal Deposit Insurance Corporation (FDIC) denied a claim that any potential buyer of Signature Bank would be required to divest from cryptocurrency activities as part of a rescue plan.

The FDIC spokesperson referenced prior comments from FDIC Chairman Martin Gruenberg, stating that the agency is not seeking to prohibit any particular activity by banks. It also has asked interested banks to submit bids for acquiring failed U.S. lenders by March 17, with priority given to those with existing bank charters.

Signature Bank is known for its partnerships with various crypto companies, including Coinbase and BitGo. This news comes amid concerns raised by U.S. Representative Tom Emmer that the government is unfairly targeting the crypto industry.

On March 12, the New York State Department of Financial Services closed down and assumed control of Signature Bank, with the FDIC acting as the receiver. In order to safeguard depositors, the FDIC moved all deposits and the majority of assets from the bank to Signature Bridge Bank, which will be run by the FDIC as it seeks out potential buyers for the institution.

Barney Frank, a former member of the US House of Representatives, has claimed that New York regulators closed Signature Bank without evidence of insolvency and that the move was intended to exert pressure on the crypto industry by sending a very strong anti-crypto message.

However, in January, the FDIC stated that it did not prevent or discourage banks from offering services to customers of any particular class or type, as long as it was permissible under law or regulation.

Subsequent reports suggested that Signature Bank CEO Joseph DePaolo and CFO Stephen Wyremski may have committed fraud by falsely claiming the bank was financially stable just three days before its closure. The bank has also reportedly been investigated for alleged money laundering.


Mar 17, 2023
Crypto News

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