• The FDIC’s Jason Brett recently told CoinDesk TV that there is no friendliness toward cryptocurrencies in the US banking system.
• Last week, California-based Silvergate Bank announced it would be “voluntarily liquidating” its assets and closing its doors, while Santa Clara-based Silicon Valley Bank (SVB) was taken over by the California Department of Financial Protection and Innovation for having “inadequate liquidity and insolvency.”
• New York-based Signature Bank was closed by state regulators for similar reasons.
FDIC Regulator Expresses Lack of Friendliness Toward Crypto
Jason Brett, Key Bridge Advisors Managing Director and former U.S. Regulator at the FDIC, recently expressed to CoinDesk TV his concern that federal regulators could be working to keep crypto assets away from the U.S. banking system due to a lack of friendliness toward cryptocurrency. He stated that “it’s about the friendliness toward crypto, and it just does not exist.”
Silvergate Bank Announces “Voluntary Liquidation”
Last week, Silvergate Bank, which primarily served crypto companies, announced it would be “voluntarily liquidating” its assets and closing its doors along with their SEN platform. This decision followed news that Santa Clara-based Silicon Valley Bank (SVB) had been taken over by the California Department of Financial Protection and Innovation after being found with “inadequate liquidity and insolvency”.
Signature Bank Closed By State Regulators
New York-based Signature Bank was also closed this week by state regulators due to concerns about inadequate liquidity or insolvency issues. While these closures have raised some eyebrows amongst those in the crypto community, it remains unclear if these decisions are related or coincidental events or part of an effort on behalf of US regulators to keep crypto firms out of the banking system altogether.
Crypto Community Raises Concerns Over Banking System Accessibility
The recent bank collapses have caused many in the crypto space to worry whether they will still have access to traditional banking services given the lack of friendliness towards cryptocurrency from federal regulators mentioned by Brett earlier this week. This has raised questions into what measures can be taken in order to protect these companies from potential exclusion from financial institutions as they look for new ways to store value securely without fear of losing access to traditional banking services like loans or deposits accounts etc..
Future Of Crypto In Banking System Remains Unclear
At this time, it remains unclear how events such as these could affect future efforts on behalf of US government agencies regarding their stance on cryptocurrencies within the mainstream banking system moving forward. It is important for members of both businesses operating within this sector and consumers alike understand how changes like these may affect them when considering any long term investments in digital assets going forward which may require access traditional financial institutions for safekeeping purposes or other services provided therein.