Several analysts believe that US authorities, supported by the Biden administration, engineered the demise of pro-crypto banks such as Silvergate Bank and Signature Bank. “Far from it,” says NYDFS Superintendent Adrienne Harris, “There had been financial issues at the root of their decline.”
Adrienne Harris had stated in March that “Signature Bank had a significant depositor base; therefore, the concept that it was a crypto bank is not correct.” A position that she just had to renew, according to The Wall Street Journal in an April 5 report.
Signature Bank was Shutdown because of Liquidity Issues
The shutdown of Signature Bank was spurred by liquidity issues, according to the head of the New York State Department of Financial Services. Associating this institution’s failure with the fact that it had clients in the crypto industry would be “crazy,” Adrienne Harris said during her lecture at Chainalysis’ Links NYC conference. She also refused to admit that the Signature Bank case indicates Operation “Choke Point 2.0.”
As previously stated, the goal of this operation in the United States is to restrict access to certain riskier sectors to the services of American banks. For example, between 2013 and 2015, the DOJ launched offensives against banks suspected of being associated with “businesses possibly engaged in cases of fraud or money laundering.”
Adrienne Harris made some Statements Regarding the Sector
On March 12, the NYDFS intervened to safeguard depositors. As a result, the New York regulator did not hesitate to refer Signature Bank to the Federal Deposit Insurance Corp.
Adrienne Harris also sought to reassure the crypto business that the NYDFS has no intention of taking it down. Yet, a so-called lack of maturity in compliance initiatives must be addressed. In other words, cryptocurrency regulation is being accelerated.
“When it comes to the Bank Secrecy Act, anti-money laundering, and cybersecurity, there is still a lack of maturity. We eagerly await the day when these technologies grow and adapt to changing business conditions,” Adrienne Harris said.