You may have noticed that there is a significant banking crisis going on in America. This resulted in the collapse of Signature Bank last week, among other things. Now other parties are given the opportunity to take over Signature Bank, but the Federal Deposit Insurance Corporation (FDIC) is now setting the condition that they must then divest all crypto customers.
What is Signature Bank?
Signature Bank is known for its collaborations within the crypto industry and supporting companies such as Coinbase, Paxos and BitGo. If the bank is taken over, there is a chance that those collaborations will be a thing of the past.
US politician Tom Emmer is concerned about the way the government is currently attacking the crypto world. “Today I sent a letter to FDIC Chairman Gruenberg to point out that his organization is using the instability in the banking sector as a weapon against legal crypto activity in the United States,” said Emmer.
It is hoped that parties will succeed in acquiring Signature Bank without having to close the crypto department. That would make it more difficult for some parties to continue operating in the United States. Now that they know this, they can start looking for an alternative banking partner.
FDIC denies attack on crypto
If Barney Frank, a former member of the US House of Representatives, is to be believed, lawmakers in New York decided to close Signature Bank, despite no insolvency. Frank speculates that the purpose of that move is to send a clear message to the crypto industry.
However, in January, the FDIC said it does not require banks and similar organizations not to do business with certain asset classes or types. With that, they seem to be talking almost directly about Bitcoin and crypto.
The year 2023 promises to be an exciting one anyway. We have all the legislative issues on the one hand and huge macroeconomic tensions on the other.