US President Joe Biden has announced via Twitter that he will do everything he can to hold the people responsible for the collapse of Silicon Valley Bank and Signature Bank “fully accountable”. Last night it was announced that the American authorities fully guarantee the balances at the failed banks, which roughly translates to means that the money printers are back on.
More today
In the post above, Biden shares some initial information and his thoughts on the plan to bail out the banks. In a speech today, he will share more about the consequences for those responsible for the bank collapse.
In any case, American politicians are reacting positively to the decision to keep the banks afloat. “Today’s actions enable the employees of companies that bank with Silicon Valley Bank and Signature Bank to receive their wages and ensure the survival of small businesses,” thus Sherrod Brown and Maxine Waters, two American politicians.
Meanwhile, Securities and Exchange Commission (SEC) Chairman Gary Gensler is taking advantage of this moment by calling for his committee to crack down on people who misbehave in the financial markets. “Without naming any specific individual or entity, we will investigate and take action if we find violations of federal securities laws,” Gensler adds.
Gensler and crypto
In recent times, Gensler and his SEC have been hard on the crypto market, prohibiting Paxos from bringing any more Binance USD (BUSD) to market and shutting down Kraken’s staking program, among other things. It probably won’t stop there, because on March 9 he wrote another op-ed for The Hill, in which he urges the industry to follow the rules.
Gary Gensler is someone who is known for basically only seeing Bitcoin as a cryptocurrency that has entered the market completely legally. The rest, although there is still some doubt about Ethereum, according to Gensler, qualifies as a security for financial law.
In that sense, an interesting period may now be ahead. On the other hand, there is also a possibility that the SEC is now getting very busy with the traditional financial system, diverting attention from the crypto industry and Bitcoin for a while.