The current banking chaos and contagion have, however, not stopped the market cap of all cryptocurrencies from going back above $1 trillion. While banks are not explicitly prohibited from servicing crypto clients, the writing is on the wall. Even so, the move by regulators indicates that crypto firms are once again cut off from the legacy banking system in the United States. Signature’s closure comes just months after the bank announced it would be limiting its crypto exposure. The U.S.’s leading crypto exchange Coinbase said that it held a corporate cash balance of approximately $230 million with the doomed bank, while stablecoin issuer Paxos admitted holding $250 million at Signature. Barney Frank (D-MA), who famously co-authored the 2010 Dodd-Frank financial reform law in response to the 2008 financial crisis, served as a director of Signature Bank, which failed. Signature Bank gave loans to crypto-native companies. 20 Years of Growth and Achievement: 2021 Annual Report, Pages 34 (Pages 56 of PDF). To put it simply, regulators closed Signature Bank simply to show that banking institutions should not be involved in crypto.įrank, who co-authored the Dodd-Frank Act after the 2007-2008 financial meltdown, noted that the only indication of issues at the bank was a deposit run of over $10 billion, which he termed as “purely contagion” from the stunning collapse of Silicon Valley Bank. Why Barney Frank Went to Work for Signature Bank. He further suggested that the bank was the “poster boy” for the digital assets industry as it was not insolvent based on fundamentals. He served on the board of Signature Bank, passed signature legislation following the 2008 financial collapse. Barney Frank (D-MA), who famously co-authored the 2010 Dodd-Frank financial reform law in response to the 2008 financial crisis, served as a director of Signature Bank, which failed. and Signature Bank board member Barney Frank is reported as saying by CNBC. Former Congressman Barney Frank is uniquely positioned to weigh in on these collapses. “I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” former rep. Regulators are yet to provide any further explanation for closing the bank. On Sunday, New York state officials shuttered Signature “in order to protect depositors,” making it the third crypto-friendly bank to go under within the past week, following Silvergate Bank’s voluntary liquidation and Silicon Valley Bank’s shutdown on Wednesday and Friday, respectively. ![]() Signature Bank – A Target Due To Crypto Ties? Speaking with CNBC on Monday, the former House Financial Services Committee Chairman claimed the bank was shut down to send a “strong anti-crypto message”. ![]() Ex-congressman Barney Frank has posited that state regulators closed New York-based Signature Bank on Sunday in part to attack the crypto industry.
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