Is Signature Bank’s Collapse Related To Recent Policies?

Asher Tame
Asher Tame Crypto
3 Min Read

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.”

is signature bank s collapse related to recent policies 2

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.

Share this Article
Asher Tame
By Asher Tame Editor-in-chief
Hi there! My name is Asher, and I'm a Finance Editor based in Canada. I'm passionate about all things finance and have spent years honing my skills in the industry. I graduated from the Master of Finance program at the University of Toronto, which provided me with a strong foundation in financial theory and practice. Since then, I've worked in a variety of finance-related roles, including as a financial analyst and a financial advisor. These experiences have given me a deep understanding of the industry and a keen eye for detail. As a Finance Editor, I'm responsible for overseeing the financial content produced by my team of writers. I work closely with them to ensure that our articles are accurate, insightful, and relevant to our readers. I'm committed to providing our readers with the information they need to make informed decisions about their finances.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *