Since then, banks with crypto ties have since faced difficulties, including Long’s Custodia, which was denied Federal Reserve System membership in January by the U.S. ![]() In it, Democrat senators Elizabeth Warren of Massachusetts and Tina Smith of Minnesota warned of mainstream banks’ ties to crypto-mentioning both Signature Bank and Silvergate, which voluntarily shutdown last week, by name. lawmakers wrote a letter to Federal Reserve Chairman Jerome Powell demanding information on American banks’ ties to crypto. Regulators and lawmakers have been cracking down on the digital asset sphere hard recently-especially since the collapse of mega digital asset exchange FTX in November.īack in December, U.S. Nevertheless, the bank's management was surprised by the New York regulators’ decision to seize it, Bloomberg reported, citing unnamed sources. After crypto-friendly bank Silvergate announced its closure, Signature’s stock nosedived and the Nasdaq later halted trading of the bank's shares. Signature Bank’s troubles had been brewing for a while: last month investment and algorithmic trading firm Statistica Capital hit the bank with a class-action lawsuit alleging it facilitated failed digital asset exchange FTX’s activities. is choosing not to be competitive in the tech space and would prefer that unregulated parts of the economy and other countries lead." Warren added that such a denial of banking access " would mark a seachange for the approach to innovation and entrepreneurship in the U.S., signaling that the U.S. “I trust what he said-he had no reason to lie.”Ĭrypto Council for Innovation CEO Sheila Warren told Decrypt that recent statements from regulators “seem to amount to de facto bans on dealing with all crypto companies, regardless of their business practices.” ![]() “Certainly since the beginning of the year the de-banking of the crypto industry has been happening,” Caitlin Long, CEO and founder of crypto bank Custodia, told Decrypt. The regulator said the move had nothing to do with crypto, telling Decrypt in an email that “the decisions made over the weekend were not crypto related” and that the body “has been facilitating well-regulated crypto activities for several years, and is a national model for regulating the space.”īut industry insiders who spoke with Decrypt say they’re not buying it, and point to a growing trend that goes back months if not years. ” But the New York Department of Financial Services today denied Frank’s claim. Barney Frank, the ex-congressman behind the Dodd-Frank Act and a Signature Bank board member, yesterday told CNBC that regulators shut down the bank to send “a very strong anti-crypto message.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |